WEBVTT 00:00:00.000 --> 00:00:02.060 Unknown: you 00:00:30.000 --> 00:00:32.060 Unknown: you 00:01:00.000 --> 00:01:02.060 Unknown: you 00:01:30.000 --> 00:01:32.060 Unknown: you 00:02:00.000 --> 00:02:02.060 Unknown: you 00:02:30.000 --> 00:02:32.060 Unknown: you 00:03:00.000 --> 00:03:02.060 Unknown: you 00:03:30.000 --> 00:03:32.060 Unknown: you 00:04:00.000 --> 00:04:02.060 Unknown: you 00:04:30.000 --> 00:04:32.060 Unknown: you 00:05:00.000 --> 00:05:02.060 Unknown: you 00:05:30.000 --> 00:05:32.060 Unknown: you 00:05:32.060 --> 00:05:34.139 Unknown: you 00:05:34.139 --> 00:05:36.199 Unknown: you 00:05:36.199 --> 00:05:38.199 Unknown: you 00:05:38.199 --> 00:05:40.199 Unknown: you 00:05:40.199 --> 00:05:42.199 Unknown: you 00:05:42.199 --> 00:05:46.319 SPEAKER_09: I think everybody's here that's going to be here now 00:05:46.319 --> 00:05:48.319 Unknown: we're good 00:05:48.319 --> 00:05:50.319 Unknown: five seconds please, five seconds 00:05:50.319 --> 00:05:56.319 Unknown: okay good evening and welcome to the energy resources and customer service committee meeting and special board meeting 00:05:56.319 --> 00:05:58.319 SPEAKER_09: meeting. 00:05:58.319 --> 00:06:00.319 SPEAKER_09: We have a meeting on June 15th. 00:06:00.319 --> 00:06:02.319 SPEAKER_09: This meeting is being recorded and can be accessed on some of its website. 00:06:02.319 --> 00:06:06.319 SPEAKER_09: Please remember to unmute your microphone when speaking in order that our virtual attendees may hear. 00:06:06.319 --> 00:06:10.319 SPEAKER_09: The microphone will display a green indicator light when the mic is on. 00:06:10.319 --> 00:06:18.319 SPEAKER_09: For members of the public attending in person that wish to speak at this meeting, please follow the speaker's request form located at the table outside this room and hand it to security. 00:06:18.319 --> 00:06:26.319 Unknown: Members of the public attending this meeting virtually that wish to provide verbal comments during the committee meeting may do so by using the rated hand feature in Zoom. 00:06:26.319 --> 00:06:28.319 SPEAKER_09: The time public comment is called. 00:06:28.319 --> 00:06:33.319 SPEAKER_09: Technical support staff will enable the audio for you when your name is announced during the public comment period. 00:06:33.319 --> 00:06:37.319 SPEAKER_09: You may also submit written comments by emailing them to public comment org. 00:06:37.319 --> 00:06:46.319 SPEAKER_09: Written comments will not be read into the record but will be provided to the board electronically and placed into the record of the meeting of receive within two hours after the meeting ends. 00:06:46.319 --> 00:06:49.319 Unknown: Chief legal officer, please conduct the roll call. 00:06:49.319 --> 00:06:50.319 Unknown: Director Sanborn. 00:06:50.319 --> 00:06:51.319 SPEAKER_10: Here. 00:06:51.319 --> 00:06:52.319 SPEAKER_10: Director Fishman. 00:06:52.319 --> 00:06:53.319 SPEAKER_10: Here. 00:06:53.319 --> 00:06:54.319 Unknown: Chair Buie-Thompson. 00:06:54.319 --> 00:06:55.319 SPEAKER_10: Present. 00:06:55.319 --> 00:06:56.319 SPEAKER_10: All committee members are present. 00:06:56.319 --> 00:07:00.319 SPEAKER_10: Also present are directors Herber, Kurth and present Tamayo. 00:07:00.319 --> 00:07:09.319 Unknown: Item number one on tonight's agenda is to provide the board the 2030 zero carbon plan to send my annual update to include utility scale project progress. 00:07:10.319 --> 00:07:12.319 SPEAKER_09: Progress towards 2030 goals. 00:07:12.319 --> 00:07:15.319 SPEAKER_09: Reliability and affordability considerations. 00:07:15.319 --> 00:07:17.319 SPEAKER_09: And an IRP update. 00:07:17.319 --> 00:07:20.319 Unknown: Our first presenter is Josh Landon. 00:07:20.319 --> 00:07:27.319 SPEAKER_09: He is the director of power generation and also Brian Swan, director of resource planning and settlements. 00:07:27.319 --> 00:07:29.319 SPEAKER_09: All right. 00:07:29.319 --> 00:07:33.319 SPEAKER_05: Well, good evening and thank you for that kind introduction, chair Buie-Thompson. 00:07:33.319 --> 00:07:36.319 SPEAKER_05: Again, my name is Josh Landon, director of power generation. 00:07:36.319 --> 00:07:42.319 SPEAKER_05: And tonight I really get the honor to present the utility scale update for zero carbon plan. 00:07:42.319 --> 00:07:49.319 SPEAKER_05: And this year I'm actually joined with a co-presenter, Brian Swan, our director of resource planning and market settlements. 00:07:49.319 --> 00:07:52.319 SPEAKER_05: And we have a lot of material and a lot of ground to cover tonight. 00:07:52.319 --> 00:07:55.319 SPEAKER_05: So I'll actually just jump right into the agenda. 00:07:55.319 --> 00:07:59.319 SPEAKER_05: Kind of lay out really the plan for this evening's update. 00:07:59.319 --> 00:08:03.319 SPEAKER_05: So really I want to take a moment in level set on the zero carbon journey. 00:08:03.319 --> 00:08:06.319 SPEAKER_05: Really talk about some of the key tenants of the zero carbon plan. 00:08:06.319 --> 00:08:13.319 SPEAKER_05: Those will be critical as we walk through the update tonight to level set on some of those key components of the plan. 00:08:13.319 --> 00:08:16.319 SPEAKER_05: And then I'll actually jump right into the utility scale update. 00:08:16.319 --> 00:08:19.319 SPEAKER_05: So talk more tactically about projects. 00:08:19.319 --> 00:08:27.319 SPEAKER_05: We have commissioned here recently projects in the pipeline that we're currently developing and also other projects that aren't yet public. 00:08:27.319 --> 00:08:34.319 SPEAKER_05: But we're flagging the resource and just communicating the amount of capacity associated with some of those projects under development. 00:08:34.319 --> 00:08:36.319 SPEAKER_05: Then I'll kind of switch gears. 00:08:36.319 --> 00:08:39.319 SPEAKER_05: I'll have an opportunity to talk about the reliability update. 00:08:39.319 --> 00:08:43.319 SPEAKER_05: So every year we perform a zero carbon plan reliability study. 00:08:43.319 --> 00:08:48.319 SPEAKER_05: So I'll highlight some of the key takeaways, some of the key items of that reliability study. 00:08:48.319 --> 00:08:54.319 SPEAKER_05: And maybe what's a little unique this year, I'll have the opportunity to talk about a case study that we recently saw. 00:08:54.320 --> 00:09:04.320 SPEAKER_05: And really how that aligns with reliability and really our strategy going forward as we continue to plan, execute, measure and correct our zero carbon plan. 00:09:04.320 --> 00:09:10.320 SPEAKER_05: Part of my update, I also have the opportunity to talk about new technology and advancements we're seeing there. 00:09:10.320 --> 00:09:15.320 SPEAKER_05: And then after my update, I'll actually get an opportunity to pass the baton to Brian. 00:09:15.320 --> 00:09:22.320 SPEAKER_05: Brian will really talk and he'll kind of zoom up and look at the progress overall for our zero carbon plan. 00:09:22.320 --> 00:09:30.320 SPEAKER_05: And really show progress to date, but also the next four to five years and really that path to the end of 2030. 00:09:30.320 --> 00:09:35.320 SPEAKER_05: In addition to that, Brian will also have an opportunity to talk about the integrated resource plan. 00:09:35.320 --> 00:09:42.320 SPEAKER_05: And then we'll have time for questions, but I would just encourage the committee and the board as you have questions, please interrupt me and Brian. 00:09:42.320 --> 00:09:46.320 SPEAKER_05: Let's go and address those in real time. 00:09:47.320 --> 00:09:54.320 SPEAKER_05: So, you know, we're actually earmarked here tonight on the five year anniversary of our zero carbon plan. 00:09:54.320 --> 00:09:59.320 SPEAKER_05: And as I think back to the inception of that plan, you actually go back to 2020. 00:09:59.320 --> 00:10:06.320 SPEAKER_05: As I did last year, I just want to take the opportunity to really commend this board in 2020, right? 00:10:06.320 --> 00:10:15.320 SPEAKER_05: We all remember the declaration of the climate emergency that really challenged the organization, stretch the organization to really focus on really the art of the possible. 00:10:16.320 --> 00:10:21.320 SPEAKER_05: Right? The belief of really trending towards zero carbon in our plan. 00:10:21.320 --> 00:10:25.320 SPEAKER_05: So really commend the board for really that foresight and thought. 00:10:25.320 --> 00:10:31.320 SPEAKER_05: And as you think back to 2020, this was a time where today a lot of utilities have zero carbon plans. 00:10:31.320 --> 00:10:36.320 SPEAKER_05: Back then it was not common. It was unique. We really set the most aggressive plan at that time. 00:10:36.320 --> 00:10:44.320 SPEAKER_05: So again, this is really a legacy item and really want to commend the board for really, again, stretching the organization, 00:10:44.320 --> 00:10:50.320 SPEAKER_05: really focusing on collaboration and innovation to really get us to the point we're at tonight. 00:10:50.320 --> 00:10:57.320 SPEAKER_05: So, you know, as I think about the zero carbon plan, I'll also highlight and kind of direct the focus to the screen here. 00:10:57.320 --> 00:11:02.320 SPEAKER_05: And as you see this diagram, this was actually part of the original zero carbon plan. 00:11:02.320 --> 00:11:06.320 SPEAKER_05: And this really was that flexible path towards zero carbon. 00:11:06.320 --> 00:11:12.320 SPEAKER_05: And it really outlined our starting point, which was about two million metric tons of greenhouse gas. 00:11:12.320 --> 00:11:22.320 SPEAKER_05: Right. So in 2020, and then as we looked at various renewable and clean energy resources, it's that glide path to zero in 2030. 00:11:22.320 --> 00:11:29.320 SPEAKER_05: So when we looked at the original plan and the various resource planning and engineering teams, as they looked at the resource mix, 00:11:29.320 --> 00:11:35.320 SPEAKER_05: what they identified is approximately 90 percent of the plan could be accomplished with available technology. 00:11:35.320 --> 00:11:40.320 SPEAKER_05: So, you know, our hydro units are foundational to our zero carbon plan. 00:11:40.320 --> 00:11:46.320 SPEAKER_05: But it was other technologies such as traditional solar, wind and battery. 00:11:46.320 --> 00:11:56.320 SPEAKER_05: As you look at the resource plan and resource mix and looked at 2030 and that load forecast, really, we could get 90 percent there with proven clean technology. 00:11:56.320 --> 00:12:03.320 SPEAKER_05: So the plan really identified as you look at the X axis close to 2030, that first 90 percent challenging enough. 00:12:03.320 --> 00:12:08.320 SPEAKER_05: But as it notes there, achieving the last 10 percent is a major challenge. 00:12:08.320 --> 00:12:13.320 SPEAKER_05: So really the plan identified new technology development would have to be identified. 00:12:13.320 --> 00:12:20.320 SPEAKER_05: It had to be cultivated, have to be scaled and proven at a utility scale really to get that last 10 percent. 00:12:20.320 --> 00:12:31.320 SPEAKER_05: So this was critical component as we think about the zero carbon plan because our teams continue to work with industry stakeholders and really push pilot programs and projects 00:12:31.320 --> 00:12:36.320 SPEAKER_05: and really try to advance that clean new technology that would get us the final 10 percent. 00:12:36.320 --> 00:12:38.320 SPEAKER_05: So that's critical to the plan. 00:12:38.320 --> 00:12:41.320 SPEAKER_05: And of course, holistically, it didn't stop at the utility scale. 00:12:41.320 --> 00:12:42.320 SPEAKER_05: I see Rachel Wong there. 00:12:42.320 --> 00:12:46.320 SPEAKER_05: She'll provide the update in terms of our customer and distributed energy. 00:12:46.320 --> 00:12:52.320 SPEAKER_05: Of course, that's a critical part of our zero carbon plan tonight, but we're just focused on utility scale there. 00:12:52.320 --> 00:13:00.320 SPEAKER_05: So the last component I'll kind of touch on as you look at the bottom, you'll see three tranches or three boxes there. 00:13:00.320 --> 00:13:03.320 SPEAKER_05: And we're really in that center box. 00:13:03.320 --> 00:13:08.320 SPEAKER_05: And, you know, last year we talked about a number of headwinds and challenges and we continue to see that. 00:13:08.320 --> 00:13:14.320 SPEAKER_05: And we've continued to see that through the duration of the zero carbon plan, quite frankly, right in the middle of covid. 00:13:14.320 --> 00:13:18.320 SPEAKER_05: We started the zero carbon plan and we've advanced quite far in that time. 00:13:18.320 --> 00:13:21.320 SPEAKER_05: So we continue to look at these challenges and mitigate them. 00:13:21.320 --> 00:13:26.320 SPEAKER_05: But as we're in the middle of the plan and we have approximately four to five years to go, 00:13:26.320 --> 00:13:32.320 SPEAKER_05: it really makes sense to continue forward progress on our zero carbon plan, but also sharpen our pencils 00:13:32.320 --> 00:13:38.320 SPEAKER_05: and holistically look at our integrated resource plan and really look at timelines of projects, the cost of projects, 00:13:38.320 --> 00:13:43.320 SPEAKER_05: and really push us forward towards the finish line there. 00:13:43.320 --> 00:13:53.320 Unknown: So the last kind of key tenet of the original zero carbon plan I'll talk about is, you know, represented by the picture on the left, right? 00:13:53.320 --> 00:14:00.320 SPEAKER_05: This is a good pictorial analogy of really the framework of the zero carbon plan, which had built in controls. 00:14:00.320 --> 00:14:06.320 SPEAKER_05: As we think about the zero carbon plan and we think about reliability, right, those are just table stakes. 00:14:06.320 --> 00:14:10.320 SPEAKER_05: As a utility, we provide an essential service, life safety. 00:14:10.320 --> 00:14:14.320 SPEAKER_05: So really, as we think about that, right, no compromise there. 00:14:14.320 --> 00:14:21.320 SPEAKER_05: So as we think about reliability, right, we're not going to compromise that as we continue forward progress on our zero carbon plan. 00:14:21.320 --> 00:14:25.320 SPEAKER_05: But furthermore, affordability is a key component, right? 00:14:25.320 --> 00:14:33.320 SPEAKER_05: As we identified in this original zero carbon plan, what affordability means is we would maintain our rate increases at inflation or below. 00:14:33.320 --> 00:14:35.320 SPEAKER_05: And we've continued to do that. 00:14:35.320 --> 00:14:37.320 SPEAKER_05: And these are natural guardrails. 00:14:37.320 --> 00:14:42.320 SPEAKER_05: And as I look at these two diagrams, and I'll kind of shift to the Venn diagram on the right, 00:14:42.320 --> 00:14:49.320 SPEAKER_05: it creates this natural trilemma that we're constantly balancing system reliability, customer affordability, 00:14:49.320 --> 00:14:52.320 SPEAKER_05: and of course the clean energy transition. 00:14:52.320 --> 00:14:57.320 SPEAKER_05: But as I highlighted with the guardrails, system reliability and customer affordability are inelastic, right? 00:14:57.320 --> 00:15:01.320 SPEAKER_05: There's not a lot of room we could do there in terms of the plan. 00:15:01.320 --> 00:15:06.320 SPEAKER_05: Of course, we do have mechanisms to review projects and review those with the board and make decisions. 00:15:06.320 --> 00:15:11.320 SPEAKER_05: But again, this is really why it makes sense to take a step back, again, as I mentioned, 00:15:11.320 --> 00:15:14.320 SPEAKER_05: sharpen our pencils and go through the integrated resource plan. 00:15:14.320 --> 00:15:18.320 SPEAKER_05: There's two, maybe, examples I could provide as we think about this Venn diagram, right? 00:15:18.320 --> 00:15:23.320 SPEAKER_05: We're trying to thread the needle on the intersection of these three interdependencies 00:15:23.320 --> 00:15:26.320 SPEAKER_05: and really find projects that advance all three of these. 00:15:26.320 --> 00:15:30.320 SPEAKER_05: As I think about some of those and the exciting work we're doing at SMUD, 00:15:30.320 --> 00:15:32.320 SPEAKER_05: one of the big one is extended next day market. 00:15:32.320 --> 00:15:37.320 SPEAKER_05: Really, that has the opportunity to expand not only system reliability and customer affordability, 00:15:37.320 --> 00:15:42.320 SPEAKER_05: but our ability to really optimize the broader western interconnection 00:15:42.320 --> 00:15:46.320 SPEAKER_05: and the western grid to really advance clean energy, 00:15:46.320 --> 00:15:50.320 SPEAKER_05: not only within our service territory, but more globally across the west. 00:15:50.320 --> 00:15:52.320 SPEAKER_05: So that's an excellent example. 00:15:52.320 --> 00:15:57.320 SPEAKER_05: The other one I would point to is we think about some of our thermals and how we're retooling them, 00:15:57.320 --> 00:15:59.320 SPEAKER_05: how we're using them today. 00:15:59.320 --> 00:16:05.320 Unknown: We do have thermals today that provide reliability support, but they actually don't run very often, 00:16:05.320 --> 00:16:10.320 SPEAKER_05: so they provide tremendous capacity value in terms of managing contingencies. 00:16:10.320 --> 00:16:15.320 SPEAKER_05: And those have real dollar impacts and cost savings. 00:16:15.320 --> 00:16:19.320 SPEAKER_05: So as I think about a project like our thermals where we're not running them, 00:16:19.320 --> 00:16:21.320 SPEAKER_05: but they're available in case of emergency, 00:16:21.320 --> 00:16:25.320 SPEAKER_05: really as you think about this Venn diagram, they're really supporting all three, 00:16:25.320 --> 00:16:27.320 SPEAKER_05: system reliability again, customer affordability, 00:16:27.320 --> 00:16:33.320 SPEAKER_05: and allowing more clean energy resources to integrate into our system. 00:16:33.320 --> 00:16:39.320 Unknown: So as I transition to the utility scale project update, I'll do this in two tranches. 00:16:39.320 --> 00:16:41.320 SPEAKER_05: First, I'll kind of start locally. 00:16:41.320 --> 00:16:46.320 SPEAKER_05: So these would be projects within our service territory or just adjacent. 00:16:46.320 --> 00:16:49.320 SPEAKER_05: They have transmission pass into our service territory. 00:16:49.320 --> 00:16:54.320 SPEAKER_05: So the upper left project, a lot of the board member a year ago was at this ribbon cutting. 00:16:54.320 --> 00:16:58.320 SPEAKER_05: This is Agri-Voltaic site, SLU house. 00:16:58.320 --> 00:17:03.320 SPEAKER_05: Just shortly after that, this project actually went commercial operation in July. 00:17:03.320 --> 00:17:08.320 SPEAKER_05: So this project for approximately the last year has been online serving customer loads. 00:17:08.319 --> 00:17:12.319 SPEAKER_05: So a huge success there, and that's an update year over year. 00:17:12.319 --> 00:17:15.319 SPEAKER_05: That project completed construction last year is now online. 00:17:15.319 --> 00:17:20.319 SPEAKER_05: The next project there, Country Acres, that's really a huge step forward 00:17:20.319 --> 00:17:24.319 SPEAKER_05: in terms of our zero carbon plan because of the scale of that project. 00:17:24.319 --> 00:17:29.319 SPEAKER_05: As you look at the capacity, it's 344 megawatts traditional solar PV, 00:17:29.319 --> 00:17:34.319 SPEAKER_05: but it also has a very large component battery supply, 172 megawatts. 00:17:34.319 --> 00:17:37.319 SPEAKER_05: So as we think about this project, it's very exciting 00:17:37.319 --> 00:17:40.319 SPEAKER_05: because it's a very active construction right now, 00:17:40.319 --> 00:17:47.319 SPEAKER_05: and we're planning potentially to be able to energize this project later, early this summer 00:17:47.319 --> 00:17:49.319 SPEAKER_05: and really start commissioning testing. 00:17:49.319 --> 00:17:53.319 SPEAKER_05: From a planning perspective, we anticipate this project being fully commissioned 00:17:53.319 --> 00:17:57.319 SPEAKER_05: and online serving load by the summer of next year. 00:17:57.319 --> 00:18:02.319 SPEAKER_05: But really, as we look at the milestones and the project progress, 00:18:02.319 --> 00:18:04.319 SPEAKER_05: really there's a clear path to meet that. 00:18:04.319 --> 00:18:08.319 SPEAKER_05: So great progress with Country Acres, so a lot of work going on there. 00:18:08.319 --> 00:18:10.319 SPEAKER_05: And then the next project, Dry Creek. 00:18:10.319 --> 00:18:14.319 SPEAKER_05: So this is what I would consider a companion project. 00:18:14.319 --> 00:18:19.319 SPEAKER_05: If you think back to 2021 when we commissioned Rancho Seco 2 solar, 00:18:19.319 --> 00:18:22.319 SPEAKER_05: 160 megawatts traditional PV solar plant, 00:18:22.319 --> 00:18:26.319 SPEAKER_05: this project is a companion because it adds that battery storage 00:18:26.319 --> 00:18:28.319 SPEAKER_05: and battery supply to that asset. 00:18:28.319 --> 00:18:33.319 SPEAKER_05: So out there in Rancho Seco, we're working with our Dry Creek project 00:18:33.319 --> 00:18:35.319 SPEAKER_05: to really commission that. 00:18:35.319 --> 00:18:37.319 SPEAKER_05: And the timeline here is quite quick. 00:18:37.319 --> 00:18:39.319 SPEAKER_05: If you look at the commissioning timeline, 00:18:39.319 --> 00:18:43.319 SPEAKER_05: we anticipate that that project will be online in late 2027, 00:18:43.319 --> 00:18:48.319 SPEAKER_05: really supplying that additional storage we could leverage in our service territory. 00:18:48.319 --> 00:18:53.319 SPEAKER_05: As the sun goes down and we could continue to serve load through energy supply, 00:18:53.319 --> 00:18:57.319 SPEAKER_05: through energy storage throughout the night in the evening. 00:18:57.319 --> 00:19:02.319 SPEAKER_05: The next two projects on the right, these are a little bit different color. 00:19:02.319 --> 00:19:05.319 SPEAKER_05: The reason is these projects are under evaluation. 00:19:05.319 --> 00:19:09.319 SPEAKER_05: So these two projects are actually SMUD developed projects. 00:19:09.319 --> 00:19:11.319 SPEAKER_05: We're a lead agency. 00:19:11.319 --> 00:19:13.319 SPEAKER_05: So our internal project development team, 00:19:13.319 --> 00:19:15.319 SPEAKER_05: they're leading the charge on these two projects. 00:19:15.319 --> 00:19:18.319 SPEAKER_05: The first one in the upper right I'll mention is Oveja Ranch. 00:19:18.319 --> 00:19:23.319 SPEAKER_05: This is a 75 megawatt project with a 37 megawatt battery project. 00:19:23.319 --> 00:19:29.319 SPEAKER_05: And actually this project in terms of the development timeline is advanced. 00:19:29.319 --> 00:19:31.319 SPEAKER_05: It has the permit incomplete. 00:19:31.319 --> 00:19:35.319 SPEAKER_05: So as we're looking at the next steps of this project, 00:19:35.319 --> 00:19:38.319 SPEAKER_05: we're really focused on completing the engineering, the design, 00:19:38.319 --> 00:19:42.319 SPEAKER_05: and really the plan to construct and operate this project long term. 00:19:42.319 --> 00:19:46.319 SPEAKER_05: The next project there is another large project, 00:19:46.319 --> 00:19:50.319 SPEAKER_05: another potential huge milestone in terms of our zero carbon plan. 00:19:50.319 --> 00:19:52.319 SPEAKER_05: This is Curry Creek. 00:19:52.319 --> 00:19:55.319 SPEAKER_05: I would also say this is a companion project to Country Acres. 00:19:55.319 --> 00:19:58.319 SPEAKER_05: It's literally just adjacent to that project site. 00:19:58.319 --> 00:20:01.319 SPEAKER_05: It actually interconnects into the same switching station. 00:20:01.319 --> 00:20:05.319 SPEAKER_05: And this is another big project for us in terms of not only battery stores 00:20:05.319 --> 00:20:10.319 SPEAKER_05: at 156 megawatts but also in terms of additional solar PV. 00:20:10.319 --> 00:20:13.319 SPEAKER_05: So as I kind of summarized these projects, 00:20:13.319 --> 00:20:16.319 SPEAKER_05: you see in kind of the yellow or green, 00:20:16.319 --> 00:20:18.319 SPEAKER_05: if you add up all these projects, 00:20:18.319 --> 00:20:25.319 SPEAKER_05: it's about a little over half a million metric tons of greenhouse gas reduction. 00:20:25.319 --> 00:20:28.319 SPEAKER_05: So as we look back at the original zero carbon plan, 00:20:28.319 --> 00:20:30.319 SPEAKER_05: if you remember, we started at 2 million, right? 00:20:30.319 --> 00:20:33.319 SPEAKER_05: So this is approximately a quarter of the way there. 00:20:33.319 --> 00:20:37.319 SPEAKER_05: As we look at other renewable projects within our service territory, 00:20:37.319 --> 00:20:39.319 SPEAKER_05: in the light blue at the bottom, 00:20:39.319 --> 00:20:45.319 SPEAKER_05: you'll see an additional 275 megawatts of solar and 275 megawatts of storage. 00:20:45.319 --> 00:20:47.319 SPEAKER_05: So this is another project we're evaluating. 00:20:47.319 --> 00:20:49.319 SPEAKER_05: It's not been publicly released, 00:20:49.319 --> 00:20:51.319 SPEAKER_05: so we're not really providing too much detail here, 00:20:51.319 --> 00:20:55.319 SPEAKER_05: but we're really working towards a potential notice of preparation 00:20:55.319 --> 00:20:59.319 SPEAKER_05: and a public process starting later this year on this project. 00:20:59.319 --> 00:21:02.319 SPEAKER_05: So another project in our pipeline that we continue to evaluate. 00:21:02.319 --> 00:21:04.319 SPEAKER_05: Director Fishman. 00:21:04.319 --> 00:21:09.319 SPEAKER_05: Just last night, the board gave initial approval to a plan to increase 00:21:09.319 --> 00:21:11.319 SPEAKER_03: the net energy metering rate. 00:21:11.319 --> 00:21:15.319 SPEAKER_03: Are we getting credit for the new solar that goes on behind the meter 00:21:15.319 --> 00:21:18.319 SPEAKER_03: in terms of the greenhouse gas reductions? 00:21:18.319 --> 00:21:21.319 SPEAKER_03: Does that count towards our zero carbon goal? 00:21:21.319 --> 00:21:23.319 SPEAKER_03: We don't. 00:21:23.319 --> 00:21:27.319 SPEAKER_05: I don't believe we count that contribution to reduction. 00:21:27.319 --> 00:21:29.319 SPEAKER_05: And these are equivalent kind of projections 00:21:29.319 --> 00:21:31.319 SPEAKER_05: just based on the operating profile of these assets. 00:21:31.319 --> 00:21:34.319 SPEAKER_05: Okay, but it ends up, to us, it looks like reduced loads. 00:21:34.319 --> 00:21:35.319 SPEAKER_03: That's correct. 00:21:35.319 --> 00:21:36.319 SPEAKER_03: You sort of count it. 00:21:36.319 --> 00:21:37.319 SPEAKER_03: That's right, yeah. 00:21:37.319 --> 00:21:39.319 Unknown: All right. 00:21:39.319 --> 00:21:43.319 Unknown: The next utility scale project update's really focused 00:21:43.319 --> 00:21:46.319 SPEAKER_05: on the regional footprint in the west 00:21:46.319 --> 00:21:48.319 SPEAKER_05: is we look at the top left project. 00:21:48.319 --> 00:21:52.319 SPEAKER_05: This is actually a wind project, Hatchet Ridge in Shasta County. 00:21:52.319 --> 00:21:55.319 SPEAKER_05: This is roughly a 100 megawatt wind project. 00:21:55.319 --> 00:21:59.319 SPEAKER_05: It was an existing wind project that the existing power purchase agreement 00:21:59.319 --> 00:22:01.319 SPEAKER_05: actually came to the end of the term. 00:22:01.319 --> 00:22:05.319 SPEAKER_05: And our energy trading and contracts team did a good job to negotiate 00:22:05.319 --> 00:22:07.319 SPEAKER_05: that we would be the offtaker there. 00:22:07.319 --> 00:22:09.319 SPEAKER_05: So this one actually started December of last year. 00:22:09.319 --> 00:22:14.319 SPEAKER_05: So this one is in service, and this is an update since last year. 00:22:15.319 --> 00:22:20.319 SPEAKER_05: The next project down, you'll see there, it mentions New Mexico, 00:22:20.319 --> 00:22:22.319 SPEAKER_05: Sunzia Wind, another wind project. 00:22:22.319 --> 00:22:24.319 SPEAKER_05: This is a very exciting project. 00:22:24.319 --> 00:22:29.319 SPEAKER_05: As you look at the capacity, our share of this project's 150 megawatts. 00:22:29.319 --> 00:22:32.319 SPEAKER_05: But as you look at this project in totality, 00:22:32.319 --> 00:22:36.319 SPEAKER_05: it is the largest clean energy project in the U.S. 00:22:36.319 --> 00:22:39.319 SPEAKER_05: It's approximately 3,500 megawatts, 00:22:39.319 --> 00:22:42.319 SPEAKER_05: almost 1,000 wind turbines in this project. 00:22:42.319 --> 00:22:46.319 SPEAKER_05: And it also includes over a 500 mile, 500 kV, 00:22:46.319 --> 00:22:50.319 SPEAKER_05: a 525 kV high voltage DC line. 00:22:50.319 --> 00:22:53.319 SPEAKER_05: And really as we look at this project and our share of it, 00:22:53.319 --> 00:22:55.319 SPEAKER_05: this does have deliverability into Kaiso. 00:22:55.319 --> 00:22:58.319 SPEAKER_05: So as you look at that transmission line and we look at this agreement, 00:22:58.319 --> 00:23:02.319 SPEAKER_05: this power does actually make it back into the Kaiso footprint. 00:23:02.319 --> 00:23:05.319 SPEAKER_05: The next couple projects, Terra Gen, this is in Kern County. 00:23:05.319 --> 00:23:09.319 SPEAKER_05: This is just a traditional PV site, just under 50 megawatts. 00:23:09.319 --> 00:23:12.319 SPEAKER_05: And so this project, as we look at the milestone there, 00:23:12.319 --> 00:23:14.319 SPEAKER_05: you can see January of next year. 00:23:14.319 --> 00:23:17.319 SPEAKER_05: So very close to this project going in service 00:23:17.319 --> 00:23:21.319 SPEAKER_05: and providing clean, renewable energy for our system. 00:23:21.319 --> 00:23:24.319 SPEAKER_05: The next project on the upper right, GRACE, very similar, 00:23:24.319 --> 00:23:26.319 SPEAKER_05: just a traditional solar project. 00:23:26.319 --> 00:23:28.319 SPEAKER_05: This is 70 megawatts. 00:23:28.319 --> 00:23:30.319 SPEAKER_05: This project is also nearing the finish line. 00:23:30.319 --> 00:23:35.319 SPEAKER_05: We anticipate December of next year that this project would be online. 00:23:35.319 --> 00:23:38.319 SPEAKER_05: The next two projects, I want to talk about Solano. 00:23:38.319 --> 00:23:46.319 SPEAKER_05: I know in this report last year we talked about how that Solano IV went into service the prior year. 00:23:46.319 --> 00:23:50.319 SPEAKER_05: So we had approximately half a year of service in Solano. 00:23:50.319 --> 00:23:55.319 SPEAKER_05: And so in 2025, we actually saw a full year for Solano. 00:23:55.319 --> 00:23:58.319 SPEAKER_05: And a couple of stats I just want to read out, 00:23:58.319 --> 00:24:02.319 SPEAKER_05: because in terms of energy production out of our Solano wind facility, 00:24:02.319 --> 00:24:06.319 SPEAKER_05: if I go back to 2023, in terms of annual production, 00:24:06.319 --> 00:24:10.319 SPEAKER_05: we are about 500 gigawatt hours of energy. 00:24:10.319 --> 00:24:15.319 SPEAKER_05: In 2024, about halfway through, we commissioned Solano IV. 00:24:15.319 --> 00:24:18.319 Unknown: We went from 500 to about 650. 00:24:18.319 --> 00:24:22.319 SPEAKER_05: So last year, full year production of Solano IV, 00:24:22.319 --> 00:24:27.319 Unknown: we eclipsed 750 gigawatt hours, so almost a terawatt hour, 00:24:27.319 --> 00:24:29.319 SPEAKER_05: three quarters of a terawatt hour. 00:24:29.319 --> 00:24:33.319 SPEAKER_05: So as we look at Solano IV, and that's been a successful project for us, 00:24:33.319 --> 00:24:37.319 SPEAKER_05: and as we fast forward to Solano V and the potential there, 00:24:37.319 --> 00:24:44.319 SPEAKER_05: that project actually is a capacity increase in terms of production on an annual basis. 00:24:44.319 --> 00:24:47.319 SPEAKER_05: The total capacity in terms of peak stays the same, 00:24:47.319 --> 00:24:51.319 SPEAKER_05: but potentially as we look at that project in the design, 00:24:51.319 --> 00:24:57.319 SPEAKER_05: we're actually installing more efficient wind turbines that have lower wind speeds to produce energy. 00:24:57.319 --> 00:25:04.319 SPEAKER_05: So we could see 80% production as we transition our Solano II asset to Solano V 00:25:04.319 --> 00:25:06.319 SPEAKER_05: and do a repower there. 00:25:06.319 --> 00:25:09.319 SPEAKER_05: And right at once that project's complete, 00:25:09.319 --> 00:25:14.319 SPEAKER_05: we'll be over a terawatt of energy on an annual basis from our Solano asset. 00:25:14.319 --> 00:25:16.319 SPEAKER_05: So a lot of kudos and success there. 00:25:16.319 --> 00:25:21.319 SPEAKER_05: It's been a huge benefit to our system and our zero carbon plan. 00:25:21.319 --> 00:25:26.319 Unknown: The last project I'll mention there, another big success, in my opinion, 00:25:26.319 --> 00:25:31.319 SPEAKER_05: in terms of our zero carbon plan and having dispatchable base load energy resources, 00:25:31.319 --> 00:25:35.319 SPEAKER_05: a geothermal asset, this is our geysers plant. 00:25:35.319 --> 00:25:37.319 SPEAKER_05: We had, this is a calpine plant, 00:25:37.319 --> 00:25:42.319 SPEAKER_05: and we had an existing power purchase agreement with geysers for 100 megawatts. 00:25:42.319 --> 00:25:47.319 SPEAKER_05: And again, our energy trading and contracts team did an excellent job in negotiating. 00:25:47.319 --> 00:25:55.319 SPEAKER_05: Two additional tranches, 28 and 29, that increases from 100 megawatts to 125 megawatts. 00:25:55.319 --> 00:26:00.319 SPEAKER_05: And then when we get to 2030, that actually increases to 150 total. 00:26:00.319 --> 00:26:03.319 SPEAKER_05: And that project has a total term of 20 years, 00:26:03.319 --> 00:26:07.319 SPEAKER_05: so that extends well beyond our 2030 plan into the future. 00:26:07.319 --> 00:26:13.319 SPEAKER_05: And again, providing that base load resource to serve load 24-7 when the sun's not shining 00:26:13.319 --> 00:26:15.319 SPEAKER_05: and the wind's not blowing. 00:26:15.319 --> 00:26:19.319 Unknown: So as we look at the total GHG reduction for our regional projects, 00:26:19.319 --> 00:26:27.319 SPEAKER_05: right in the lower right, you'll see about a million metric tons of greenhouse gas reduction from this plan. 00:26:27.319 --> 00:26:36.319 Unknown: Also under evaluation, our energy trading contracts team is looking at an additional 425 megawatts of solar, 00:26:36.319 --> 00:26:42.319 SPEAKER_05: 331 megawatts of battery storage, and an additional 40 megawatts of geothermal. 00:26:42.319 --> 00:26:48.319 SPEAKER_05: So right as we evaluate all those projects, I'm not intending to communicate that. 00:26:48.319 --> 00:26:54.319 SPEAKER_05: All those would be moving forward, but it's certainly projects that are viable that we're evaluating. 00:26:54.319 --> 00:27:01.319 SPEAKER_05: And if you add up the greenhouse gas reduction from the prior two slides, the total, 00:27:01.319 --> 00:27:06.319 SPEAKER_05: it's in excess of two million metric tons of greenhouse gas reduction. 00:27:06.319 --> 00:27:11.319 SPEAKER_05: So really from a planning perspective, our teams have done a very excellent job developing projects 00:27:11.319 --> 00:27:19.319 SPEAKER_05: and identifying clean energy resource projects really to offset over our original expectation or plan. 00:27:19.319 --> 00:27:28.319 SPEAKER_05: So right, we're now in the phase where execution is key and we continue to manage these projects and continue to develop them. 00:27:28.319 --> 00:27:36.319 Unknown: So in terms of new technology, as I talked about that last 10%, really that's the biggest challenge of our zero carbon plan, 00:27:36.319 --> 00:27:42.319 SPEAKER_05: when you think about serving load when the sun's not up and the battery storage we have is depleted, 00:27:42.319 --> 00:27:49.319 SPEAKER_05: and you're really trying to serve load in those challenging times, I'll call it say midnight until the next morning when the sun comes up 00:27:49.319 --> 00:27:52.319 SPEAKER_05: and our renewable assets are producing electricity. 00:27:52.319 --> 00:27:55.319 SPEAKER_05: Really, we identified the need for new clean technology. 00:27:55.319 --> 00:28:01.319 SPEAKER_05: As we looked at the inception of the zero carbon plan, right, we looked at many alternative fuels, 00:28:01.319 --> 00:28:05.319 SPEAKER_05: hydrogen, renewable natural gas, biofuels. 00:28:05.319 --> 00:28:11.319 SPEAKER_05: We looked at other potential new technology that could help serve this gap. 00:28:11.319 --> 00:28:18.319 SPEAKER_05: Really, optimistically, we haven't seen the advancement in the utility scale progress that we hoped. 00:28:18.319 --> 00:28:24.319 SPEAKER_05: The one exception is there's been tremendous forward progress on carbon capture. 00:28:24.319 --> 00:28:33.319 SPEAKER_05: So for a number of years now, we've been providing an update that we've been working with CalPine and the Sutter Project to convert that to carbon capture. 00:28:33.319 --> 00:28:37.319 Unknown: So really the update here is that we continue those discussions. 00:28:37.319 --> 00:28:41.319 SPEAKER_05: Sutter continues to work on their front end engineering design. 00:28:41.319 --> 00:28:50.319 SPEAKER_05: They continue to refine that, and that will really inform potential options that we would consider and potential power purchase agreement costs. 00:28:50.319 --> 00:29:02.319 SPEAKER_05: One of the updates that were made since last year, Director Herber, I remember you asked about the DOE grant, that $270 million that's flagged there. 00:29:02.319 --> 00:29:05.319 SPEAKER_05: At that time, there was no change there. 00:29:05.319 --> 00:29:11.319 SPEAKER_05: Unfortunately, shortly after the update last year, that DOE grant was repealed. 00:29:11.319 --> 00:29:17.319 SPEAKER_05: But the good news in terms of project viability, the Q45 tax credit still remains. 00:29:17.319 --> 00:29:22.319 SPEAKER_05: So as we think about the project viability here, that's a very extensive tax credit. 00:29:22.319 --> 00:29:29.319 SPEAKER_05: When you think about the storage of carbon and you think about the per unit storage cost, this could be anywhere over a 12-year period, 00:29:29.319 --> 00:29:33.319 SPEAKER_05: which the Q45 is eligible for, 12 years of operation. 00:29:33.319 --> 00:29:37.319 SPEAKER_05: This could be in the neighborhood of $1.5 to $2 billion. 00:29:37.319 --> 00:29:46.319 SPEAKER_05: So as you think about that potential offset and really grappling with affordability of our plan, really there's a good avenue there for this project to move forward. 00:29:46.319 --> 00:29:48.319 SPEAKER_05: So we continue to support this project. 00:29:48.319 --> 00:29:52.319 SPEAKER_05: SMUD actually supported a couple bills. 00:29:52.319 --> 00:29:57.319 SPEAKER_05: There was a companion bill that was eventually passed SB 614. 00:29:57.319 --> 00:30:04.319 SPEAKER_05: And really this established regulations that carbon dioxide could actually be transported. 00:30:04.319 --> 00:30:07.319 SPEAKER_05: And that's a critical component to, of course, carbon capture. 00:30:07.319 --> 00:30:16.319 SPEAKER_05: So that was a huge milestone that that passed and it really set the stage that there's forward progress and a path forward on carbon capture. 00:30:17.319 --> 00:30:21.319 SPEAKER_05: Question about this and I thought I'm sorry if I didn't ask. 00:30:21.319 --> 00:30:25.319 SPEAKER_09: I know so we don't get the $207 million. 00:30:25.319 --> 00:30:29.319 SPEAKER_09: We also, we don't personally benefit from the tax, but they do, right? 00:30:29.319 --> 00:30:30.319 SPEAKER_09: That is correct. 00:30:30.319 --> 00:30:33.319 SPEAKER_09: So that's how the money shell game is done. 00:30:33.319 --> 00:30:38.319 SPEAKER_09: If this actually goes forward, what would be our cost? 00:30:38.319 --> 00:30:45.319 SPEAKER_09: If it's everything's positive without the award, what do you, and I know it's still fluctuating, 00:30:45.319 --> 00:30:47.319 SPEAKER_09: but I've just looked online. 00:30:47.319 --> 00:30:57.319 SPEAKER_09: There's varying costs when you just kind of Google what would be our, if Algo as well, give us a guesstimate. 00:30:57.319 --> 00:30:58.319 SPEAKER_09: Yeah, we don't. 00:30:58.319 --> 00:30:59.319 SPEAKER_09: It's very wide online. 00:30:59.319 --> 00:31:04.319 SPEAKER_09: Like if you look, it was like 1.5 billion, you know, slow billion, you know. 00:31:04.319 --> 00:31:06.319 SPEAKER_09: Yeah, we do not have the pricing. 00:31:06.319 --> 00:31:09.319 SPEAKER_05: Really that front-end engineering design study is still in progress. 00:31:09.319 --> 00:31:13.319 SPEAKER_05: That will really inform the total cost of the retrofit and upgrade. 00:31:14.319 --> 00:31:23.319 SPEAKER_05: And then when you layer on the tax incentive, that's really kind of the key components that CalPine would need to really start a negotiation process on price. 00:31:23.319 --> 00:31:26.319 SPEAKER_05: So we do not have that at this point. 00:31:26.319 --> 00:31:33.319 SPEAKER_05: So we hope to have some of those indicative pricing numbers and options to present to the board later this year. 00:31:33.319 --> 00:31:40.319 SPEAKER_09: But like, again, because I'm looking at old stuff, so it looked like the phase one cost had a price, right? 00:31:40.319 --> 00:31:42.319 SPEAKER_09: So are we not having to pay for that? 00:31:42.319 --> 00:31:44.319 SPEAKER_09: Is someone else paying for that? 00:31:44.319 --> 00:31:46.319 Unknown: Oh, the phase one in terms of... 00:31:46.319 --> 00:31:48.319 SPEAKER_05: Like all the engineers, like someone else. 00:31:48.319 --> 00:31:51.319 SPEAKER_09: Oh, yeah. So we're not engaged in paying for any of that. 00:31:51.319 --> 00:31:52.319 SPEAKER_05: This is a CalPine project. 00:31:52.319 --> 00:31:55.319 SPEAKER_05: So we won't engage until when? 00:31:55.319 --> 00:31:56.319 Unknown: That's correct. 00:31:56.319 --> 00:32:03.319 SPEAKER_05: We have not spent any money in terms of any kind of engineering or design or any material acquisitions, nothing. 00:32:03.319 --> 00:32:05.319 SPEAKER_05: We're really just partnering with them. 00:32:05.319 --> 00:32:13.319 SPEAKER_05: And once all that's sorted and the project is at a point where they know the cost, that's when really our engagement really starts heavily. 00:32:18.319 --> 00:32:21.319 Unknown: The next new technology update I'll quickly touch on is fuel cells. 00:32:21.319 --> 00:32:29.319 SPEAKER_05: As we look at carbon capture and we really look at load growth we've seen across the U.S., really driven by data center, 00:32:29.319 --> 00:32:35.319 SPEAKER_05: you've seen really a lot of fuel cells added to the electric system. 00:32:35.319 --> 00:32:41.319 SPEAKER_05: And so as we think about fuel cells, there's a couple advantages that potentially they could provide in terms of carbon capture. 00:32:41.319 --> 00:32:48.319 SPEAKER_05: Quite frankly, they're more efficient in terms of the exhaust that comes out of their fuel cells has a higher percentage of carbon. 00:32:48.319 --> 00:32:53.319 SPEAKER_05: So it actually makes that process of storing, capturing and storing that carbon more efficient. 00:32:54.319 --> 00:33:01.319 SPEAKER_05: As I talked about Sutter and carbon capture, really just highlighting this slide because we're continuing to look at many options. 00:33:01.319 --> 00:33:04.319 SPEAKER_05: It's not just one option in terms of carbon capture. 00:33:04.319 --> 00:33:11.319 SPEAKER_05: So I just highlight this in terms of just communicating that we continue to look at other new technology, other options that we have available, 00:33:11.319 --> 00:33:15.319 SPEAKER_05: and really we're trying to identify the best option going forward. 00:33:16.319 --> 00:33:23.319 SPEAKER_05: Actually in a couple months we'll have an opportunity to come back to the committee and provide an update not only on advanced geothermal, 00:33:23.319 --> 00:33:25.319 SPEAKER_05: but also fuel cell and carbon capture. 00:33:25.319 --> 00:33:32.319 SPEAKER_05: So later this year we'll have an opportunity to do a little bit deeper dive on some of the new technology we continue to look at. 00:33:32.319 --> 00:33:39.319 SPEAKER_05: So really the next steps here are really to continue to look at this technology, continue to evaluate its viability in our system, 00:33:39.319 --> 00:33:44.319 SPEAKER_05: and really to kind of keep our eye on the progression here with this opportunity. 00:33:46.319 --> 00:33:57.319 Unknown: Okay, so as I kind of round out my presentation, I'll try to do the best I can to distill a very complex reliability study down into a few remarks. 00:33:57.319 --> 00:34:06.319 SPEAKER_05: But as I think about the annual zero carbon reliability study we perform, really this is looking at a couple components. 00:34:06.319 --> 00:34:14.319 SPEAKER_05: The first major component I would point to is our ability to serve load through our transmission system. 00:34:14.320 --> 00:34:18.320 SPEAKER_05: So it's a load serving capability study of our transmission network. 00:34:18.320 --> 00:34:26.320 SPEAKER_05: So really this is forecasting what load is anticipated to look like through 2030, actually looks out 10 years. 00:34:26.320 --> 00:34:35.320 SPEAKER_05: It looks at that load profile, looks at our resource mix and the anticipated resources we would have at those various stages of the zero carbon plan. 00:34:35.320 --> 00:34:44.320 SPEAKER_05: And it really balances can you get import energy, all the energy within our local system to match the load forecast every hour of the year. 00:34:44.320 --> 00:34:53.320 SPEAKER_05: So this is really an exhaustive study just to ensure that our resources have enough energy supply to meet load every point of the year. 00:34:53.320 --> 00:34:59.320 SPEAKER_05: The other component of the resource or the reliability study is operational adequacy study. 00:34:59.320 --> 00:35:03.320 SPEAKER_05: So this is a really exhaustive study that looks at a couple components. 00:35:03.320 --> 00:35:06.320 SPEAKER_05: It looks at ancillary services, right? 00:35:06.320 --> 00:35:14.320 SPEAKER_05: We often talk about energy, but there are also critical reliability components in terms of managing system voltage, managing system frequency. 00:35:14.320 --> 00:35:17.320 SPEAKER_05: So that study looks at that. 00:35:17.320 --> 00:35:21.320 SPEAKER_05: In addition to that study, it really looks at an intra-hour study. 00:35:21.320 --> 00:35:24.320 SPEAKER_05: So it identified 12 sensitivity cases. 00:35:24.320 --> 00:35:31.320 SPEAKER_05: It looked at various outputs of resources we have in our system, how those look every hour of the year. 00:35:31.320 --> 00:35:33.320 SPEAKER_05: Actually at a five minute basis. 00:35:33.320 --> 00:35:36.320 SPEAKER_05: It looks at our load forecast through 2030. 00:35:36.320 --> 00:35:38.320 SPEAKER_05: And really again it's doing that pairing. 00:35:38.320 --> 00:35:41.320 SPEAKER_05: But it's really looking at different types of events, right? 00:35:41.320 --> 00:35:44.320 SPEAKER_05: If we have a low hydro year, for example. 00:35:44.320 --> 00:35:48.320 SPEAKER_05: As I talk about edge operating cases, last year I talked about a low hydro year. 00:35:48.320 --> 00:35:58.320 SPEAKER_05: 2015, 2021, we saw a hydro year where it was less than 30% of what we would anticipate or hope for in a normal water year. 00:35:58.320 --> 00:36:02.320 SPEAKER_05: So that would be an edge case that this sensitivity study would look at. 00:36:02.320 --> 00:36:05.320 SPEAKER_05: It would also look at impacts to wildfire, right? 00:36:05.320 --> 00:36:13.320 SPEAKER_05: Last year we talked about in 2024 there were two wildfires that impacted actually five 500 kV transmission lines. 00:36:13.320 --> 00:36:19.320 SPEAKER_05: So really challenging operating environments when you lose large transmission lines and imports. 00:36:19.320 --> 00:36:24.320 SPEAKER_05: But this study really looks at all of those and evaluates all those cases. 00:36:24.320 --> 00:36:28.320 SPEAKER_05: And so as I look at this diagram, I'll touch on a couple items. 00:36:28.320 --> 00:36:32.320 SPEAKER_05: As you look at the ribbon on the bottom, kind of the green color there. 00:36:32.320 --> 00:36:35.320 SPEAKER_05: Unanticipated system peaks. 00:36:35.320 --> 00:36:39.320 SPEAKER_05: So as we think about variability of load, what could impact that? 00:36:39.320 --> 00:36:41.320 SPEAKER_05: Certainly that's an extreme heat wave. 00:36:41.320 --> 00:36:43.320 SPEAKER_05: We've seen those in the past. 00:36:43.320 --> 00:36:50.320 SPEAKER_05: But as you look at load forecasting, it's an extremely challenging endeavor today. 00:36:51.320 --> 00:37:01.320 SPEAKER_05: As you look at large loads and large load potentials from data centers, as you look at electrification, there's just many more variables there with unanticipated peak loads. 00:37:01.320 --> 00:37:05.320 SPEAKER_05: So we continue to look at all those scenarios, continue to look at those. 00:37:05.320 --> 00:37:14.320 SPEAKER_05: But the major takeaway I want to leave in terms of the reliability study update is it identified a planning path forward. 00:37:14.320 --> 00:37:26.320 SPEAKER_05: Meaning if we execute on all the resources we have in the plan, that includes carbon capture at Sutter, that includes renewable natural gas at our CPP, consumer power plant. 00:37:26.320 --> 00:37:38.320 SPEAKER_05: And then we actually execute on all the projects, renewable clean energy projects in our plan, we can serve load in 2030 during normal operating conditions. 00:37:39.320 --> 00:37:45.320 SPEAKER_05: So these aren't these edge cases I'm talking about where we have low water year, there's impacts to solar production. 00:37:45.320 --> 00:37:51.320 SPEAKER_05: So that's really the next slide I want to talk about because it's a good case study. 00:37:51.320 --> 00:38:00.320 SPEAKER_05: As we looked at just a number of months ago, late November into December, we did see an event with Thule fog. 00:38:00.320 --> 00:38:08.320 SPEAKER_05: As you look at that NASA satellite photo there throughout the central valley of California, you see that big cloud of fog. 00:38:08.320 --> 00:38:13.320 SPEAKER_05: And really when you think about what is that impact, of course it's the solar production. 00:38:13.320 --> 00:38:21.320 SPEAKER_05: So as I kind of direct us to the top right of this slide, you'll see essentially 14 days in a row. 00:38:21.320 --> 00:38:31.320 SPEAKER_05: And these are load profiles, the yellow is our utility scale solar production, and the blue is the production from our Solano wind assets. 00:38:31.320 --> 00:38:38.320 SPEAKER_05: So as you look at that first day in December 3rd, that's indicative of what we would anticipate in the winter. 00:38:38.320 --> 00:38:43.320 SPEAKER_05: So that's kind of what we plan for, that's what we would anticipate solar production in the winter. 00:38:43.320 --> 00:38:49.320 SPEAKER_05: The third general rule of thumb is between 50 to 40 percent of what the peak would be in the summer. 00:38:49.320 --> 00:38:51.320 SPEAKER_05: So we anticipate, we plan for that. 00:38:51.320 --> 00:38:54.320 SPEAKER_05: We also plan for a lot of contingencies. 00:38:54.320 --> 00:39:03.320 SPEAKER_05: But as you look at the next 13 days in a row where we saw that Thule fog and see the impact, you'll see days where that solar production is less than 10 percent. 00:39:03.320 --> 00:39:08.320 SPEAKER_05: Indicative of this kind of weather pattern too, there's not a lot of air movement, right? 00:39:08.320 --> 00:39:10.320 SPEAKER_05: That fog just hangs around. 00:39:10.320 --> 00:39:14.320 SPEAKER_05: So as you look at the production from Solano, right, that's very low. 00:39:14.320 --> 00:39:17.320 SPEAKER_05: In some cases, zero on certain days. 00:39:17.320 --> 00:39:27.320 SPEAKER_05: So as we think about these grid operating conditions, really what I'm trying to highlight is we plan for these, and we really manage through these as we look at our resource planning. 00:39:27.320 --> 00:39:35.320 SPEAKER_05: But a critical component to meeting some of these challenges is having our thermal units available that can start up quickly. 00:39:35.320 --> 00:39:38.320 SPEAKER_05: Last year we talked about some of our peaking units. 00:39:38.320 --> 00:39:40.320 SPEAKER_05: I could start up in 10 minutes. 00:39:40.320 --> 00:39:50.320 SPEAKER_05: We actually could count that capacity towards meeting contingency reserves and reliability requirements, which is where we provide that economic value and that reliability value. 00:39:50.320 --> 00:39:53.320 SPEAKER_05: So customer affordability and system reliability. 00:39:53.320 --> 00:40:04.320 SPEAKER_05: And in fact, when I looked at 2025 data, McClellan actually ran for less than 0.2 percent of the year. 00:40:04.320 --> 00:40:06.320 SPEAKER_05: So number of hours. 00:40:06.320 --> 00:40:21.320 SPEAKER_05: So as you look at that asset and you look at the value it has to our system, one thing you'll point at is it's not emitting any emissions 99.8 percent of the year, but 100 percent of the year it's providing capacity value. 00:40:21.320 --> 00:40:35.320 Unknown: So that capacity value in terms of resource adequacy, our O-Team looked at it and calculated between 6 to 7 million dollars of benefit just for having McClellan waiting there ready for a reliability event. 00:40:35.320 --> 00:40:49.320 SPEAKER_05: So as we really think about this type of event, and every year we see kind of a different edge operating case, whether it's a low water year, whether it's even smoke from wildfires has impacted our solar production. 00:40:49.320 --> 00:40:52.320 SPEAKER_05: You know, quite significantly, 60 to 70 percent. 00:40:52.320 --> 00:41:02.320 SPEAKER_05: So as you look at all these events that we continue to be challenged with, really that transition in our plan to ensuring that our thermals are available for these edge operating cases. 00:41:02.320 --> 00:41:08.320 SPEAKER_05: Again, as we think about retooling our thermal assets, we're looking at how can we use them more efficiently? 00:41:08.320 --> 00:41:18.320 SPEAKER_05: How can we, as we add more renewable energy and clean energy supply, how can we reduce utilization and operating time on our thermal plants? 00:41:18.320 --> 00:41:27.320 SPEAKER_05: So as we continue to look at this, one thing I'll point at on this slide, you'll see the statement aligns with SB100. 00:41:27.320 --> 00:41:40.320 SPEAKER_05: So SB100, if you're not familiar, this is a clean energy requirement by 2045 that just purely states all energy that's going to serve California load has to be clean energy by 2045. 00:41:40.320 --> 00:41:56.320 SPEAKER_05: So earlier this year that SB100 had a draft report that came out, and one of the key components that report highlighted is, and this is an obvious statement, but as you add more clean energy resources, your dependency on gas and thermal reduces. 00:41:56.320 --> 00:41:59.320 SPEAKER_05: And that makes intuitive sense. 00:41:59.320 --> 00:42:05.320 SPEAKER_05: But what it did identify was that thermal assets would be needed for reliability. 00:42:05.320 --> 00:42:09.320 SPEAKER_05: So even at a state level, that was identified in SB100. 00:42:09.320 --> 00:42:18.320 SPEAKER_05: But one step further, it identified that during winter conditions, specifically, thermals could be needed for reliability. 00:42:18.320 --> 00:42:19.320 SPEAKER_05: And that's twofold, right? 00:42:19.320 --> 00:42:26.320 SPEAKER_05: We looked at traditionally renewable output from solar is about 40% of what it would be in the summer. 00:42:26.320 --> 00:42:31.320 SPEAKER_05: So you have reduced output from solar, and then you also have these cloud events that we're managing. 00:42:32.320 --> 00:42:39.320 SPEAKER_05: But the other key factor is we continue to electrify not only buildings, but vehicles, right? 00:42:39.320 --> 00:42:45.320 SPEAKER_05: Our load profile in the winter is actually growing at a faster pace than the summer. 00:42:45.320 --> 00:42:56.320 SPEAKER_05: So as you look at our balancing authority, you look at California balancing authority, really, there's an inflection point where in the future, the winter load will rival the summer peak. 00:42:56.320 --> 00:43:00.320 SPEAKER_05: So you really have that challenge we're grappling with. 00:43:01.320 --> 00:43:03.320 SPEAKER_05: A couple of thoughts, really. 00:43:03.320 --> 00:43:05.320 SPEAKER_03: Yeah, we're going to have to change our messaging. 00:43:05.320 --> 00:43:14.320 SPEAKER_03: I think the general public is really in tune now with the fact that hot summer days, that's when we need to reduce demand, five to eight. 00:43:14.320 --> 00:43:18.320 SPEAKER_03: That's really been well received, and we've sort of pounded it into their heads. 00:43:18.320 --> 00:43:27.320 SPEAKER_03: When we talk about a winter peaking event with corresponding lack of wind, lack of solar, if there's a – the fog belt comes in again. 00:43:27.320 --> 00:43:34.320 SPEAKER_03: And that, you know, it's cold, people are turning on the heat, it's dark longer, more lighting load. 00:43:34.320 --> 00:43:36.320 SPEAKER_03: We're going to have to change that messaging a little bit. 00:43:36.320 --> 00:43:50.320 SPEAKER_03: And the other thing, when Paul and Laura and I were in Portugal and learning about the Iberian Peninsula outage from a couple of years ago now, or a year ago – two years ago. 00:43:50.320 --> 00:43:51.320 SPEAKER_03: Two years ago. 00:43:51.320 --> 00:43:52.320 SPEAKER_03: It was April. 00:43:53.320 --> 00:43:58.320 SPEAKER_03: It's not – it's a semantic difference, right? 00:43:58.320 --> 00:44:10.320 SPEAKER_03: It's not that they had too much wind and solar on the grid, it's that they had so much wind and solar on the grid, they didn't need all their spinning mass generation, and they didn't have it in the right locations. 00:44:10.320 --> 00:44:13.320 SPEAKER_03: At least that's sort of what we heard. 00:44:13.320 --> 00:44:16.320 SPEAKER_03: And so, just – we have to be careful. 00:44:17.320 --> 00:44:27.320 SPEAKER_03: I mean, the more wind and solar we have, it's great, but we also have to have some of that spinning mass, whether it's hydro or geothermal or wherever it's coming from. 00:44:30.320 --> 00:44:32.320 SPEAKER_03: I'm sorry, I'm preaching to the choir here right now. 00:44:32.320 --> 00:44:37.320 SPEAKER_03: Yeah, Bill, I appreciate the remarks, because as usual, Director Fishman, you're spot on. 00:44:38.320 --> 00:44:47.320 SPEAKER_05: And that's why I kind of highlighted when we talk about geothermal, such a critical component to our zero carbon plan as you think about potentially carbon capture, that is spinning mass. 00:44:47.320 --> 00:44:57.320 SPEAKER_05: These are assets that can support to frequency response issues, voltage support issues, and really manage the variability of traditional renewable resources. 00:44:57.320 --> 00:44:59.320 SPEAKER_05: So those are critical to our plan. 00:44:59.320 --> 00:45:02.320 SPEAKER_05: And that's why that 10 percent was really the big challenge, that new technology. 00:45:03.320 --> 00:45:07.320 SPEAKER_05: Because that scale, right, if there was an abundance of geothermal, we'd have it, right? 00:45:07.320 --> 00:45:10.320 SPEAKER_05: So there's some challenges there with just the scalability. 00:45:10.320 --> 00:45:11.320 SPEAKER_05: Thank you. 00:45:13.320 --> 00:45:17.320 Unknown: Yeah, I have a question kind of along those lines. 00:45:17.320 --> 00:45:24.320 SPEAKER_00: You know, we have been told that we need something for that last 10 percent. 00:45:25.320 --> 00:45:35.320 SPEAKER_00: There has been talk of using some type of fuel at the Cosuminous Power Plant that is cleaner. 00:45:36.320 --> 00:45:42.320 SPEAKER_00: Is that technology advancing? Is that a real possibility? 00:45:43.320 --> 00:45:46.320 Unknown: Yeah, so there is a path towards renewable natural gas. 00:45:46.320 --> 00:45:50.320 SPEAKER_05: That is something we do utilize at a smaller scale today. 00:45:50.320 --> 00:46:00.320 SPEAKER_05: And there's biogas, right, Kiefer in our service territory is biogas, approximately 14 megawatts, so a small component, right, of our overall need. 00:46:00.320 --> 00:46:01.320 SPEAKER_05: But that is a path. 00:46:01.320 --> 00:46:07.320 SPEAKER_05: I think the one thing I would highlight with that path is the challenge in terms of affordability. 00:46:07.320 --> 00:46:13.320 SPEAKER_05: The cost of renewable natural gas is quite expensive relative to traditional natural gas. 00:46:14.320 --> 00:46:23.320 SPEAKER_05: So it really comes when we evaluate CPP, the volume of gas we would need to run that plant, cycle that plant in the future. 00:46:23.320 --> 00:46:27.320 SPEAKER_05: It's quite expensive in terms of managing it with renewable natural gas. 00:46:27.320 --> 00:46:30.320 SPEAKER_05: But it's still a component we continue to look at. 00:46:30.320 --> 00:46:36.320 SPEAKER_05: I think one of the challenges we see part of our zero carbon plant, but everyone's challenge with it is scarcity, right? 00:46:36.320 --> 00:46:39.320 SPEAKER_05: Everyone's after renewable natural gas, right? 00:46:39.320 --> 00:46:44.320 SPEAKER_05: You start to see scarcity pricing, and of course the global conflicts don't help. 00:46:44.320 --> 00:46:47.320 SPEAKER_05: So we're seeing prices increase for commodities. 00:46:47.320 --> 00:46:51.320 SPEAKER_05: And so those are challenges we continue to grapple with and evaluate. 00:46:51.320 --> 00:46:57.320 SPEAKER_05: But the original zero carbon plant did anticipate that there would be renewable natural gas for CPP. 00:47:00.320 --> 00:47:03.320 Unknown: And you don't have a sense when that might be coming. 00:47:03.320 --> 00:47:08.320 SPEAKER_00: Like you're not seeing it in five years, three years, ten years? 00:47:08.320 --> 00:47:17.320 Unknown: Yes, so we do have today several renewable natural gas contracts that our resource optimization team manages. 00:47:17.320 --> 00:47:27.320 SPEAKER_05: And really without getting too far into the weeds, those gas contracts do have deliverability to the transmission system in California, the gas transmission system. 00:47:27.320 --> 00:47:32.320 SPEAKER_05: But actually it's quite advantageous from an affordability standpoint to arbitrage that gas. 00:47:32.320 --> 00:47:36.320 SPEAKER_05: As I mentioned, the cost and the value of that gas is quite high. 00:47:36.320 --> 00:47:43.320 SPEAKER_05: So we use it as a commodity offset today rather than earmarking it for CPP use. 00:47:43.320 --> 00:47:49.320 SPEAKER_05: But that's not to be said in the future as we continue to evaluate the plan, as we continue to get closer to 2030. 00:47:49.320 --> 00:47:52.320 SPEAKER_05: A lot of those contracts extend beyond 2030. 00:47:52.320 --> 00:47:56.320 SPEAKER_05: So we do have contracts today for renewable natural gas. 00:47:56.320 --> 00:47:57.320 SPEAKER_05: Thank you. 00:48:06.320 --> 00:48:19.320 SPEAKER_02: So I get the desirability of having McClellan and Campbell available for reliability purposes. 00:48:19.320 --> 00:48:34.320 SPEAKER_02: Especially if we're seeing these winter things going on, do we have any sort of range of greenhouse gas impacts of utilizing those resources to keep us reliable? 00:48:34.320 --> 00:48:37.320 SPEAKER_02: And I realize that's crystal ballish. 00:48:37.320 --> 00:48:41.320 SPEAKER_02: Yeah, that's something we can analyze and follow up with the board report. 00:48:41.320 --> 00:48:49.320 SPEAKER_05: And the reason I say that is because a lot of times today when we run these assets, again, as I mentioned, McClellan doesn't run typically. 00:48:49.320 --> 00:48:54.320 SPEAKER_05: Right, the startups we did see in 2025 was actually in the fourth quarter. 00:48:54.320 --> 00:48:57.320 SPEAKER_05: So it was managing some of these winter challenges. 00:48:57.320 --> 00:49:05.320 SPEAKER_05: But with that said, when I think about looking at Campbell's, that does run for economics today. 00:49:05.320 --> 00:49:07.320 SPEAKER_05: It does run for supplying loads. 00:49:07.320 --> 00:49:19.320 SPEAKER_05: So it's hard to differentiate how much of that is for peer reliability, system issues, lack of supply versus just an economic position that we would run that unit to serve loads. 00:49:19.320 --> 00:49:22.320 SPEAKER_05: So we could follow up on that. 00:49:22.320 --> 00:49:32.320 Unknown: And the distinction of running it for economic purposes, do we tag particular instances? 00:49:32.320 --> 00:49:33.320 SPEAKER_02: Yeah. 00:49:33.320 --> 00:49:37.320 SPEAKER_02: Like it's difficult. Is that something we were teaming to do? 00:49:37.320 --> 00:49:45.320 SPEAKER_02: Yeah, we have that data where we know when we're running our thermals for market sales versus serving our loads. 00:49:45.320 --> 00:49:46.320 SPEAKER_05: So we do have that. 00:49:46.320 --> 00:49:55.320 SPEAKER_05: And I would just maybe take an opportunity to, you know, earlier I mentioned the extended next day market as we look at entering that market in 2027. 00:49:55.320 --> 00:50:03.320 SPEAKER_05: I think that's a real critical key decision that we'll have to evaluate is how we leverage our thermal units in that market. 00:50:03.320 --> 00:50:08.320 SPEAKER_05: And right as I mentioned, that market is a very global wide footprint across the West. 00:50:08.320 --> 00:50:12.320 SPEAKER_05: So it really optimizes assets across the Western interconnect. 00:50:12.320 --> 00:50:20.320 SPEAKER_05: And by that, I mean if our units are dispatched to run, if that's the decision and the direction we go, that means they're the most efficient unit. 00:50:20.320 --> 00:50:24.320 SPEAKER_05: And they're actually offsetting less efficient units somewhere else in the Western interconnect. 00:50:24.320 --> 00:50:37.320 SPEAKER_05: And as you look at also the affordability standpoint, you know, Director Fishman, you highlighted this last year, there's a very tight correlation to plant efficiency and actually the price of that plant in the market. 00:50:37.320 --> 00:50:46.320 SPEAKER_05: So again, the market will dispatch the most efficient unit, really ideally optimizing across a wider footprint and reducing overall emissions across the West. 00:50:46.320 --> 00:50:49.320 SPEAKER_05: So that's a key decision we'll have to evaluate. 00:50:49.320 --> 00:50:54.320 SPEAKER_05: And that's a key component of the actually the integrated resource plan that we'll look at. 00:50:54.320 --> 00:51:02.320 Unknown: I just wanted to chime in on Director Herbers-Kant. 00:51:02.320 --> 00:51:13.320 SPEAKER_09: I think there in the past there's maybe been some confusion or horse trading in terms of actual things that go into the pipe to our various facilities. 00:51:13.320 --> 00:51:21.320 SPEAKER_09: And I'll just echo what I've heard is, you know, if it's price competitive within a certain range, 00:51:21.320 --> 00:51:30.320 SPEAKER_09: that's why I would like to continue to see us trying to actually get the real, you know, real biofuels into, you know, consummness in our other plants. 00:51:30.320 --> 00:51:45.320 SPEAKER_09: I know it's hard and we are competing in a short, but I know we've had conversations in the past and I know there was a bit of horse trading because it's not always exactly the fuel in the pipe and how we do the math. 00:51:45.320 --> 00:52:08.320 Unknown: I just, you know, if we could keep fighting the good fight on that because it just even makes it a better story, right, of us keeping these plants if we, you know, again, we're not going to pay, you know, 10 times or what have you, but, you know, as the market shifts and more people enter the market, I know, again, I'm just one person, but would like to continue to see pursuing that. 00:52:08.320 --> 00:52:13.320 Unknown: Absolutely. Yep. Something we continue to evaluate. Yep. 00:52:14.320 --> 00:52:28.320 SPEAKER_05: So the last statement I'll make on this slide is really as we look at parallel availability, again, is our reliability study. I highlighted this last year, our updated reliability study last year identified once Country Acres is in service. 00:52:28.320 --> 00:52:47.320 SPEAKER_05: Really, that sets the pathway where utilization of even Campbell's would be reduced, but maintaining a parallel operation posture as we continue to ensure that Country Acres is reliable and it's meeting not only serving energy, but all the ancillary services we anticipate for voltage and frequency response as well. 00:52:47.320 --> 00:52:57.320 SPEAKER_05: So we'll continue to look at opportunities to, again, retool, reduce utilization, but retain for reliability purposes. 00:52:57.320 --> 00:53:08.320 SPEAKER_05: So here's an example. You know, late last year, Director Rose, you had the opportunity to come out to CPP as we were in active outage and we were doing the turn down project. 00:53:08.320 --> 00:53:22.320 SPEAKER_05: This was actually a very, I'll say, intrusive and challenging project in terms of the gas turbine retrofit. It actually required us to do retrofits to the burner system, the burner management control system. 00:53:22.320 --> 00:53:37.320 SPEAKER_05: But what effectively this allowed us to do is reduce the minimum operating set point for CPP while still maintaining a very tight, narrow window on our emissions compliance and maintaining flame stability. 00:53:37.320 --> 00:53:47.320 SPEAKER_05: So as we looked at this project over a couple years ago, we anticipated it would see about a $10 million benefit on an annual basis. 00:53:47.320 --> 00:53:57.320 SPEAKER_05: And we also looked at about 100,000 metric tons of greenhouse gas reduction. That's about equivalent to adding a 100 megawatt solar facility to our system. 00:53:57.320 --> 00:54:06.320 SPEAKER_05: So a huge benefit in terms of not only reliability affordability, but also, again, that transition to a cleaner energy resource. 00:54:06.320 --> 00:54:18.320 SPEAKER_05: And I won't walk through the diagram on the right in detail, but I do want to highlight a couple things. As you look at the stack of colors, those represent different resources we had online. 00:54:19.320 --> 00:54:28.320 SPEAKER_05: Our resource optimization team as a case study just picked a particular day earlier in March, March 9th, where turn down was utilized. 00:54:28.320 --> 00:54:43.320 SPEAKER_05: And typically, as we would anticipate, the turn down would be utilized any time, kind of on the shoulder months. So really the spring, winter, fall time frames, we would leverage and really use that additional downward capacity of CPP. 00:54:43.320 --> 00:54:53.320 SPEAKER_05: And as you look at, I'll just point out two trends. One is that green dotted line. So this reflects the real-time energy price. 00:54:53.320 --> 00:55:05.320 Unknown: And as you note that throughout this 24-hour period on this diagram, it spikes up quite high, really around hour-ending 8. So this is really 7 a.m. to 8 a.m., right? 00:55:06.320 --> 00:55:20.320 SPEAKER_05: As you think about a lot of, perhaps, traditional thermal units shutting down as wind and solar starts to ramp up, potentially that pricing signal looks like there was a little bit of scarcity in the market, so the pricing responds. 00:55:20.320 --> 00:55:30.320 SPEAKER_05: It goes high. But conversely, as you look at the middle of the day, where you see that yellow kind of band, that's indicative of the solar supply and our solar output. 00:55:31.320 --> 00:55:43.320 SPEAKER_05: So as you would anticipate during the middle of the day, when solar is producing, there's an abundance of energy, kind of the classic economics in supply and demand. There's a lot of supply. Demand is a little lower. 00:55:43.320 --> 00:55:58.320 SPEAKER_05: So the price goes down. You actually see that green line go below zero. So even today, that's not uncommon, that during the middle of the day, the price of market power when solar is available is just slightly below zero. 00:55:58.320 --> 00:56:09.320 SPEAKER_05: So again, this is the opportunity in that green bar where we could lower CPP to that new minimum output, which is approximately 80 to 90 megawatts lower. 00:56:09.320 --> 00:56:25.320 SPEAKER_05: And so for every hour where that market condition exists and we're running that plant lower but keeping it on for reliability purposes, that allows us to really leverage the market and acquire additional renewable energy at a very affordable cost. 00:56:25.320 --> 00:56:35.320 SPEAKER_05: So this was a great project for us again. As we looked at this one-day case study, for this one day, we did see $24,000 in commodity savings just for this one day. 00:56:35.320 --> 00:56:41.320 SPEAKER_05: And then we saw 440 metric tons of CO2 equivalent reductions. 00:56:41.320 --> 00:56:49.320 SPEAKER_05: So as you extrapolate that out through the year, our forecast of 10 million and 100,000 metric tons of reduction is in line. 00:56:49.320 --> 00:57:00.320 SPEAKER_05: If we utilize this turn down approximately 200 to 270 days out of the year, which is plausible, we would see those type of gains on an annual basis. 00:57:00.320 --> 00:57:09.320 SPEAKER_05: So a great project for us. And the last two slides I'll quickly go through as we looked at turn down for CPP. Obviously CPP is running all the time. 00:57:10.320 --> 00:57:23.320 SPEAKER_05: We looked at retooling options to perform turn down at our other facilities. So Campbell is one of them. Obviously Campbell doesn't run as much as CPP, so there's a little bit less of a value, but still a value nonetheless. 00:57:23.320 --> 00:57:30.320 SPEAKER_05: So as we look at commodity reductions, we see about just shy of 200,000 in terms of fuel reduction with a turn down. 00:57:30.320 --> 00:57:35.320 SPEAKER_05: This is reducing the minimum output of Campbell's from 100 megawatts to 90. 00:57:35.320 --> 00:57:40.320 SPEAKER_05: But in addition to that, I really didn't highlight another component, which is the cap and invest cost. 00:57:40.320 --> 00:57:49.320 SPEAKER_05: So right about $30 per metric ton. So as you add that in, now this estimate is kind of pushing 400,000 to 500,000 a year. 00:57:49.320 --> 00:57:55.320 SPEAKER_05: So another great project, our PowerGen thermal team is executing this year. 00:57:56.320 --> 00:58:05.320 SPEAKER_05: And then here's my last slide, and I'll turn it over to Brian as I look at continuing forward progress on reducing emissions and utilization of our assets. 00:58:05.320 --> 00:58:08.320 SPEAKER_05: The last one I'll talk about is our Procter & Gamble site. 00:58:08.320 --> 00:58:18.320 SPEAKER_05: So this is a very traditional Cogen plant, meaning that we still supply steam to Procter & Gamble as they manufacture and for their process needs. 00:58:19.320 --> 00:58:30.320 SPEAKER_05: So it is a traditional true Cogen still, where we still have a steam host and we still have requirements and obligations to provide them reliable steam, 8760 every hour of the year. 00:58:30.320 --> 00:58:40.320 SPEAKER_05: Traditionally, as you look at the history of Procter & Gamble, when that unit ran for really reliability and to serve load, right, that plant was always online. 00:58:40.320 --> 00:58:44.320 SPEAKER_05: So providing that steam supply was just part of the operation. 00:58:44.320 --> 00:58:57.320 SPEAKER_05: But as we continue our energy transition, we continue to integrate more renewable assets into our system, right, that old operating paradigm of that unit being on all the time is just not the case anymore. 00:58:57.320 --> 00:59:07.320 SPEAKER_05: So as we looked at how we can continue to optimize our existing thermal fleet, we're actually looking at three existing boilers that are on site. 00:59:07.320 --> 00:59:09.320 SPEAKER_05: These are just auxiliary boilers. 00:59:09.320 --> 00:59:17.320 SPEAKER_05: Their entire intent is not to provide any energy, but it's just to meet the requirements of that steam host and meet that. 00:59:17.320 --> 00:59:22.320 SPEAKER_05: The value here is when we don't need the combustion turbine or the energies to run. 00:59:22.320 --> 00:59:30.320 Unknown: We still can meet the steam requirements of that steam host, but using auxiliary boilers and still maintain a reliable supply. 00:59:31.320 --> 00:59:42.320 SPEAKER_05: The value, again, is that those auxiliary boilers use about 20% of the gas and have far less emissions in terms of comparing them to the gas turbine. 00:59:42.320 --> 00:59:52.320 SPEAKER_05: So a huge benefit here is you look at the cost and you look at the GSU reduction, about half of what CPP was, 56,000 metric tons. 00:59:53.320 --> 01:00:04.320 SPEAKER_05: In terms of cost, it's about 2.3 million in just fuel savings as we, again, layer on the cap and invest savings that effectively could be closer to 5 million. 01:00:04.320 --> 01:00:11.320 SPEAKER_05: So another good augmentation, reducing utilization of our gas turbines, but allowing them to serve reliability needs. 01:00:11.320 --> 01:00:13.320 SPEAKER_05: Yeah, President DeMaio? 01:00:14.320 --> 01:00:25.320 SPEAKER_02: Yeah, so the greenhouse gas reduction that you have there, 56,000 metric tons, that's just the reduction of electricity. 01:00:25.320 --> 01:00:31.320 SPEAKER_02: It's associated with not running the combustion turbine and the power plant. 01:00:31.320 --> 01:00:36.320 SPEAKER_05: To meet the steam host, it's using the ox boilers when those units don't need to provide energy. 01:00:37.320 --> 01:00:49.320 SPEAKER_02: And so the burning of natural gas to provide the energy to create the steam, is that something that is counted against us or is that just counted against Procter and Gamble? 01:00:49.320 --> 01:00:58.320 SPEAKER_02: Yeah, it's a good question. I don't know how that's allocated. I could follow up on that one because to your point, it's not used in our energy supply. 01:00:58.320 --> 01:01:02.320 SPEAKER_05: It's just really to meet the requirements of that contract and that agreement. 01:01:02.320 --> 01:01:04.320 SPEAKER_05: Thank you. 01:01:05.320 --> 01:01:17.320 SPEAKER_05: So that concludes my update. If there's no further questions, I'll kind of pass the baton to Brian and he'll, again, provide that more macro view of where we're at with the zero carbon plan. 01:01:17.320 --> 01:01:18.320 SPEAKER_05: Thank you. 01:01:18.320 --> 01:01:22.320 SPEAKER_05: Just sort of carry any news that you're asking? 01:01:22.320 --> 01:01:23.320 Unknown: In terms of... 01:01:23.320 --> 01:01:25.320 SPEAKER_05: Just changes or... 01:01:25.320 --> 01:01:26.320 SPEAKER_07: No. 01:01:26.320 --> 01:01:27.320 SPEAKER_07: The only one that's not mentioned, right? 01:01:27.320 --> 01:01:37.320 SPEAKER_07: Yeah, no. Effectively, at this point, in terms of operations, we continue to look at opportunities to reduce utilization, but no material updates there or impacts to operation. 01:01:37.320 --> 01:01:38.320 SPEAKER_05: Thank you. 01:01:42.320 --> 01:01:48.320 Unknown: All right. Good evening, SMUD Board community. Thanks for joining us here tonight. 01:01:48.320 --> 01:01:54.320 Unknown: We'll be stepping out of the trees and taking a look at the forest here as we go through my slides. 01:01:54.320 --> 01:02:01.320 SPEAKER_04: So backing up, certainly a lot of good detail in Josh Langdon's presentation tonight. 01:02:01.320 --> 01:02:11.320 SPEAKER_04: So really, this next area we'll be exploring is kind of a high-level look at the portfolio progress to date. 01:02:11.320 --> 01:02:16.320 SPEAKER_04: And really what I like to do here first is take a look back over time. 01:02:16.320 --> 01:02:30.320 SPEAKER_04: Between 2000 to about 2020, guided by SD9, our resource planning directive, we added about 1100 megawatts of resource, renewable resource, I should say, to our portfolio. 01:02:30.320 --> 01:02:39.320 SPEAKER_04: Those are, along the way, meeting goals within SD9, whether it be on the renewable side, decarbonization, and the like. 01:02:39.320 --> 01:02:45.320 SPEAKER_04: The most recent goal in 2020 was a 35% reduction in 1990 level emissions. 01:02:45.320 --> 01:02:50.320 SPEAKER_04: We actually exceeded that goal and met the 33% standard. 01:02:50.320 --> 01:02:54.320 SPEAKER_04: So 1100 megawatts over about two decades there. 01:02:54.320 --> 01:03:03.320 SPEAKER_04: In 2020, of course, the board signed a climate emergency declaration asking staff to develop the zero carbon plan. 01:03:04.320 --> 01:03:15.320 SPEAKER_04: And at that point, we really set out to do what no other utility had done before, which was to fully decarbonize our energy supply by 2030. 01:03:15.320 --> 01:03:21.320 Unknown: At the time, very ambitious goal for the organization. 01:03:21.320 --> 01:03:24.320 SPEAKER_04: I think it was even called a moonshot goal for the time. 01:03:25.320 --> 01:03:26.320 SPEAKER_04: But we set out. 01:03:26.320 --> 01:03:36.320 SPEAKER_04: Staff was very on board with trying to get as far as we could such that we maintain reliable service as well as affordable power. 01:03:36.320 --> 01:03:50.320 Unknown: And to date, we brought online about 440 megawatts of clean, renewable, and storage resources with another 990 megawatts committed to come online by 2030. 01:03:51.320 --> 01:03:56.320 SPEAKER_04: So a total of 1,430 megawatts of resource. 01:03:56.320 --> 01:04:03.320 Unknown: And comparing that to what we did the previous two decades, it's about 130% in half the amount of time. 01:04:03.320 --> 01:04:09.320 SPEAKER_04: So it speaks to really the tremendous growth of clean resources in our portfolio. 01:04:10.320 --> 01:04:20.320 Unknown: Now, we did target, however, in the zero carbon plan to get about a 90% reduction, about 2,400 to 3,500 megawatts of resource. 01:04:20.320 --> 01:04:26.320 SPEAKER_04: With current commitments, we get about 60% renewable when we add our large hydro. 01:04:26.320 --> 01:04:29.320 SPEAKER_04: We're right at about 80% carbon free. 01:04:29.320 --> 01:04:40.320 Unknown: So the question right now, as we shift from the green to the white and blue area on this diagram, about 2,100 megawatts of resource under evaluation. 01:04:40.320 --> 01:04:45.320 SPEAKER_04: That includes the carbon capture and sequestration project, about 300 megawatts. 01:04:45.320 --> 01:04:52.320 SPEAKER_04: So with those projects under evaluation, that gets us right into the range that we were targeting. 01:04:52.320 --> 01:04:56.320 SPEAKER_04: The question at this time is really the affordability piece, right? 01:04:57.320 --> 01:05:04.320 Unknown: The cost of resources really haven't been as high as they have been, say, for about 30 years. 01:05:04.320 --> 01:05:11.320 SPEAKER_04: So we'll take a look at some of the cost pressures on renewables and storage resources on the next slide. 01:05:11.320 --> 01:05:21.320 SPEAKER_04: But I do want to kind of applaud staff and SMUD organization, as well as the community, for supporting the growth to this point. 01:05:21.320 --> 01:05:27.320 SPEAKER_04: That is really a tremendous amount of resource that's being added to the portfolio at this time. 01:05:29.320 --> 01:05:31.320 SPEAKER_04: Before I move on, yes? 01:05:32.320 --> 01:05:35.320 SPEAKER_09: Just because, you know, we're 2026. 01:05:35.320 --> 01:05:38.320 SPEAKER_09: We never said, like, beginning of 2023. 01:05:38.320 --> 01:05:39.320 SPEAKER_09: No, we said 2023. 01:05:39.320 --> 01:05:46.320 SPEAKER_09: So if we were communication-wise, you know, some people up for a re-election this year, I'll be up for re-election 2020. 01:05:46.320 --> 01:05:53.320 Unknown: So when we can confidently say we're guaranteed the 80%, correct? 01:05:53.320 --> 01:05:58.320 SPEAKER_09: That is our, we can say we are for sure. 01:05:58.320 --> 01:06:00.320 SPEAKER_09: Or close, like, 99, right? 01:06:00.320 --> 01:06:06.320 SPEAKER_09: So if we were to communicate, it's this last 20% that will be challenging based largely on costs. 01:06:06.320 --> 01:06:10.320 SPEAKER_09: I mean, I looked at some other carbon sequestration projects. 01:06:10.320 --> 01:06:14.320 SPEAKER_09: I mean, the cheapest one that I saw was 600 million. 01:06:14.320 --> 01:06:17.320 Unknown: So we can just guess what it's going to be, right? 01:06:17.320 --> 01:06:24.320 Unknown: And 600 million, what translates to what, one and a half, two and a half rate increase, give or take? 01:06:24.320 --> 01:06:27.320 SPEAKER_09: Just on a project. Just on one. 01:06:27.320 --> 01:06:29.320 Unknown: Give or some change. It's around there. 01:06:29.320 --> 01:06:32.320 SPEAKER_09: It's not a small amount is what I'm getting to. 01:06:32.320 --> 01:06:34.320 Unknown: So we take that. 01:06:34.320 --> 01:06:38.320 SPEAKER_09: So whatever left sounds fairly expensive to get us. 01:06:38.320 --> 01:06:48.320 SPEAKER_09: So we would possibly be looking at a higher rate increase than our typical CPI for any one of these very expensive projects. 01:06:48.320 --> 01:06:58.320 SPEAKER_09: Yeah, that's kind of what we're working on right now with Scott Martin's team on the finance side is looking at the list of projects we have here 01:06:58.320 --> 01:07:03.320 SPEAKER_04: and really trying to decide what's achievable within our affordability guardrails. 01:07:04.320 --> 01:07:10.320 SPEAKER_04: And so then we can say, okay, maybe we can get to 85% or 90%, right? 01:07:10.320 --> 01:07:15.320 SPEAKER_04: So that's really the work that's going on across the teams right now. 01:07:15.320 --> 01:07:28.320 Unknown: Because 80% is pretty amazing. Because if we had set 80%, I don't know how close we would have gotten to 80%, but I think 80% knowing pretty confidently, right, barring anything. 01:07:29.320 --> 01:07:44.320 Unknown: Yeah, give you a sense, you know, to move the needle here, say 10%, you'd probably, you know, if you're talking about geothermal, that's a really dense 8760 type resource. 01:07:44.320 --> 01:07:55.320 SPEAKER_04: If you did about 120 megawatts of additional geothermal, that would probably add about a 10% increase in your carbon free percentage. 01:07:55.320 --> 01:07:56.320 SPEAKER_04: Just even better than you. 01:07:56.320 --> 01:07:58.320 SPEAKER_04: So just kind of by scale. 01:07:58.320 --> 01:08:06.320 SPEAKER_09: Okay, I just want to, because I think this is a great, I mean, you look at the leaf, it's pretty fantastic in the short amount of time. 01:08:06.320 --> 01:08:16.319 SPEAKER_09: I know we're all hoping for the moonshot goal, but I don't think the public realizes like how difficult that that jump is. 01:08:16.319 --> 01:08:27.319 SPEAKER_09: And I know we're all charging to 100%, but just as of today, it's pretty phenomenal, the 80%. 01:08:27.319 --> 01:08:29.319 SPEAKER_09: I'm going to keep fighting for more. 01:08:29.319 --> 01:08:30.319 SPEAKER_09: Right. 01:08:30.319 --> 01:08:32.319 SPEAKER_09: But don't rest now. 01:08:32.319 --> 01:08:36.319 SPEAKER_06: Let me comment on that. I think Chair Buut-Thompson, I think you're absolutely right. 01:08:36.319 --> 01:08:40.319 SPEAKER_06: I think, you know, for sure we'll get to 80%. That's a guarantee that we'll get there. 01:08:40.319 --> 01:08:46.319 SPEAKER_06: In fact, I think when you look at all the budget and all the projects that we have online, it's going to be north of 80%, for sure. 01:08:46.319 --> 01:08:48.319 SPEAKER_06: Probably in the 90-92 range. 01:08:48.319 --> 01:08:52.319 SPEAKER_06: I think the challenge is going to be the last 8%, the 10% that we talked about. 01:08:52.319 --> 01:08:58.319 SPEAKER_06: I think you rightly pointed out carbon capture, because losing a 270 million grant is going to be a major challenge. 01:08:58.319 --> 01:09:01.319 SPEAKER_06: But now what's really encouraging is there's new technology coming through. 01:09:01.319 --> 01:09:05.319 SPEAKER_06: Like Bloom Energy, right, the new fuel cell that's actually coming through. 01:09:05.319 --> 01:09:12.319 SPEAKER_06: You know, if we actually look at the... You always look at a company's stock price to see what advancement they're doing. 01:09:12.319 --> 01:09:17.319 SPEAKER_06: If you actually take a look at the price in January 2025, it was $23. 01:09:17.319 --> 01:09:20.319 SPEAKER_06: Today is $240 per share. 01:09:20.319 --> 01:09:26.319 Unknown: So they're going gangbusters right now on... And what's driving this, the AI, I mean, the data centerpiece. 01:09:26.319 --> 01:09:34.319 SPEAKER_06: And they're really pretty, like I'm going to say, optimistic in terms of looking at how do you actually capture carbon, 01:09:34.319 --> 01:09:40.319 SPEAKER_06: because a lot of the companies, the AI companies whose data centers are coming out, are also very environmental conscious. 01:09:40.319 --> 01:09:48.319 SPEAKER_06: So they are actually putting a lot of money in and bringing new technology on board, new carbon capture technology on board to try to actually bend the curve on it. 01:09:48.319 --> 01:09:56.319 SPEAKER_06: So I think, you know, you know, we, Thompson, I think you're absolutely right, is that I think this significant challenge is going forward because of the change in national policy. 01:09:57.319 --> 01:10:08.319 SPEAKER_06: But this... Because also with the technology advancements and what is being invested to drive the market is also giving us a lot of hope in terms of bringing a lot of the renewable costs on new technology down. 01:10:08.319 --> 01:10:15.319 SPEAKER_06: And that's really, really one of the main purposes of doing the IRP next year, is that now you can actually look at each one of those in details. 01:10:15.319 --> 01:10:19.319 SPEAKER_06: And hopefully by that time, some of the new numbers will come in, you know, hopefully by CalPine. 01:10:19.319 --> 01:10:25.319 SPEAKER_06: And the board will be much more informed, the public will be much more informed about what's achievable by 2030. 01:10:26.319 --> 01:10:27.319 SPEAKER_06: Thank you for the comment. 01:10:31.319 --> 01:10:37.319 SPEAKER_02: So this graph is in megawatts, do we? 01:10:37.319 --> 01:10:51.319 SPEAKER_02: But what we really need to be concerned about is our carbon emissions and how many of our gigawatt hours or megawatt hours are carbon free. 01:10:52.319 --> 01:10:59.319 SPEAKER_02: And so do we have a graph that demonstrates that? 01:11:00.319 --> 01:11:06.319 Unknown: We don't have that tonight. That's something we can certainly develop. 01:11:08.319 --> 01:11:20.319 SPEAKER_04: You know, just thinking about the starting point, which was about two million metric tons, you know, so if we're 80% of that, right, we could kind of get a sense of how low our carbon emissions are. 01:11:21.319 --> 01:11:25.319 SPEAKER_04: And how high our carbon emissions may be in 2030 to meet retail sales. 01:11:26.319 --> 01:11:29.319 SPEAKER_04: But that's certainly something we can follow up with. 01:11:29.319 --> 01:11:40.319 SPEAKER_04: Yeah, it's just really kind of hard to evaluate because of all the previous slides where it's like, okay, we've got all these megawatts installed, but then they're not actually working and they don't work. 01:11:40.319 --> 01:11:43.319 SPEAKER_02: None of them are working all the time. 01:11:43.319 --> 01:11:47.319 SPEAKER_02: So it'd be really helpful to have this in. 01:11:47.319 --> 01:11:57.319 Unknown: Yeah, we can actually get that, but I think what Josh did earlier on his presentation is he actually gave what is the local project was like half a million metric tons. 01:11:57.319 --> 01:12:02.319 SPEAKER_06: And then you look at the regional piece that's coming in and then there's another half a million that they're actually looking at that's coming up. 01:12:02.319 --> 01:12:05.319 SPEAKER_06: And then for the regional piece, there's 1.5 mil. 01:12:05.319 --> 01:12:11.319 SPEAKER_06: Now, of course, we said all those will not probably come into fruition, but it's actually north of two million metric tons. 01:12:11.319 --> 01:12:15.319 SPEAKER_06: But we can certainly actually, as the next presentation, give that as a tracking on it. 01:12:15.319 --> 01:12:26.319 SPEAKER_06: Because right now, as I said, I mean, the potential greenhouse gas reduction is capturing those two slides for both regional and local. 01:12:26.319 --> 01:12:33.319 SPEAKER_06: And then we'll probably have to put into the slide that was talked about what carbon capture would, how many metric tons of carbon capture that would be. 01:12:33.319 --> 01:12:35.319 SPEAKER_06: So we can actually put that together. 01:12:35.319 --> 01:12:36.319 Unknown: Thank you. 01:12:36.319 --> 01:12:37.319 SPEAKER_02: Thank you. 01:12:38.319 --> 01:12:39.319 Unknown: All right. 01:12:39.319 --> 01:12:54.319 Unknown: This next slide highlights some of the key pressures on the cost of renewable and storage resources, but also on emerging technology. 01:12:54.319 --> 01:13:03.319 SPEAKER_04: Just to give kind of a sense of where things were when we originally minted the zero carbon plan back in 2021. 01:13:04.319 --> 01:13:07.319 SPEAKER_04: Solar prices had never been lower. 01:13:07.319 --> 01:13:11.319 SPEAKER_04: They're right at about or just under about three cents a kilowatt hour. 01:13:11.319 --> 01:13:14.319 Unknown: Amazing to think that's what they were back then. 01:13:15.319 --> 01:13:18.319 SPEAKER_04: You know, wind was in the four and a half cent range. 01:13:18.319 --> 01:13:22.319 SPEAKER_04: Geothermal, very valuable resource, so priced higher. 01:13:22.319 --> 01:13:25.319 SPEAKER_04: There's less of it as well, about six to eight cents. 01:13:25.319 --> 01:13:30.319 SPEAKER_04: But over the last five years, we've seen significant increases in this area. 01:13:30.319 --> 01:13:36.319 SPEAKER_04: It could be double to three times what we were paying in 2020. 01:13:36.319 --> 01:13:39.319 SPEAKER_04: If we had the foresight, of course, we could have done a lot more right back then. 01:13:39.319 --> 01:13:51.319 SPEAKER_04: But so some of the key areas of pressure, really the supply chain slowing due to the pandemic in 2020, 01:13:52.319 --> 01:13:58.319 SPEAKER_04: that reduced the supply of materials to develop clean renewable projects and storage, 01:13:58.319 --> 01:14:04.319 SPEAKER_04: albeit at the same time ever increasing global demand for these resources. 01:14:04.319 --> 01:14:13.319 SPEAKER_04: So nearly overnight we saw the prices for renewable and storage resources go up considerably due to that slowdown in supply chain. 01:14:13.319 --> 01:14:19.319 SPEAKER_04: We also have tariffs to contend with now, also adding to the cost pressures. 01:14:20.319 --> 01:14:26.319 Unknown: Federal investment and production tax credits going away, that's also a significant cost pressure. 01:14:26.319 --> 01:14:33.319 SPEAKER_04: We haven't yet seen this fully in bid end projects from our counterparties just yet, 01:14:33.319 --> 01:14:41.319 SPEAKER_04: but we do anticipate prices to maybe tick up even more due to the loss of federal investment production tax credits. 01:14:42.319 --> 01:14:46.319 SPEAKER_04: Typically, these things would reduce a project cost by about 30%. 01:14:46.319 --> 01:14:53.319 SPEAKER_04: So it could be a very substantial increase that we haven't seen yet to these resources. 01:14:54.319 --> 01:14:59.319 Unknown: The last area of cost pressure I'll mention here is the loss of grants. 01:14:59.319 --> 01:15:08.319 SPEAKER_04: There's been a lot of discussion about the CCS project and the loss of that $270 million grant from the DOE. 01:15:08.319 --> 01:15:11.319 SPEAKER_04: Since then, clawed back as we talked about. 01:15:11.319 --> 01:15:18.319 SPEAKER_04: But that also yet to be seen, but I'm sure that will have some impact on the cost of that resource. 01:15:18.319 --> 01:15:24.319 SPEAKER_04: We did talk about the Q45 tax credits kind of holding up that project. 01:15:24.319 --> 01:15:31.319 SPEAKER_04: That was probably the lion's share of the tax credits and the funding opportunity for that project. 01:15:31.319 --> 01:15:36.319 SPEAKER_04: But again, $270 million loss on a project. 01:15:36.319 --> 01:15:41.319 SPEAKER_04: Still yet to be seen how that may impact the pricing for that resource. 01:15:43.319 --> 01:15:53.319 Unknown: I will note too, while this sounds somewhat dire, we've navigated challenging paradigms like this in the past. 01:15:53.319 --> 01:16:00.319 SPEAKER_04: So we'll certainly get through this and that brings me to the next area of the presentation, 01:16:00.319 --> 01:16:03.319 SPEAKER_04: which is really the update to the IRP. 01:16:03.319 --> 01:16:06.319 Unknown: The integrated resource plan. 01:16:06.319 --> 01:16:10.319 SPEAKER_04: Long hand there for folks who don't know. 01:16:10.319 --> 01:16:14.319 SPEAKER_04: Our zero carbon plan for all intents and purposes is our latest IRP. 01:16:14.319 --> 01:16:21.319 SPEAKER_04: And also just to explain a little bit more for folks that are new to integrated resource planning. 01:16:21.319 --> 01:16:28.319 SPEAKER_04: IRPs are a forward-looking long-term study, say over 10 to 20 years typically. 01:16:29.319 --> 01:16:35.319 SPEAKER_04: It's a utility study that's typically done looking at several future outcomes or pathways, 01:16:35.319 --> 01:16:41.319 SPEAKER_04: demonstrating how a utility will meet customers' future energy needs reliably, affordably, 01:16:41.319 --> 01:16:45.319 SPEAKER_04: and with what types of resources to meet certain policy goals. 01:16:45.319 --> 01:16:47.319 SPEAKER_04: For us, it's environmental goals. 01:16:47.319 --> 01:16:50.319 SPEAKER_04: That's what we're most focused on. 01:16:50.319 --> 01:16:54.319 SPEAKER_04: But also maintaining affordable rates and reliable power. 01:16:55.319 --> 01:17:04.319 Unknown: And 2026 marks the five-year anniversary of the zero carbon plan minting back in 2021. 01:17:04.319 --> 01:17:09.319 SPEAKER_04: We've made significant progress to date on the utility scale side of things, 01:17:09.319 --> 01:17:16.319 SPEAKER_04: as we kind of highlighted here tonight, but also in Rachel Wong's updates on the customer side, 01:17:16.319 --> 01:17:19.319 SPEAKER_04: most recently last September. 01:17:19.319 --> 01:17:21.319 SPEAKER_04: So a lot of progress made. 01:17:21.319 --> 01:17:23.319 SPEAKER_04: A lot of GHG emissions reduced. 01:17:23.319 --> 01:17:27.319 SPEAKER_04: A lot of criteria pollutants reduced here also locally. 01:17:27.319 --> 01:17:31.319 SPEAKER_04: Many lessons learned over the last five years. 01:17:31.319 --> 01:17:37.319 SPEAKER_04: At this point, significant changes are abound in the key assumptions of the IRP. 01:17:37.319 --> 01:17:44.319 SPEAKER_04: And it's really time to kind of reset the assumptions in that plan and look at our path forward. 01:17:44.319 --> 01:17:50.319 Unknown: Now, we also have a statutory requirement with the California Energy Commission 01:17:50.319 --> 01:17:54.319 SPEAKER_04: to file a compliant board adopted IRP once every five years. 01:17:54.319 --> 01:18:01.319 SPEAKER_04: Our last IRP filing was in September 22nd, which again was the zero carbon plan. 01:18:01.319 --> 01:18:08.319 SPEAKER_04: And so we have that same requirement here looming here in September 2027. 01:18:08.319 --> 01:18:14.319 SPEAKER_04: So the update IRP will also help with our strategy here in policy setting, 01:18:14.319 --> 01:18:18.319 SPEAKER_04: but also help meet that regulatory requirement with the state. 01:18:21.319 --> 01:18:27.319 Unknown: That's some key questions. There's many questions, but really these are kind of the top areas 01:18:27.319 --> 01:18:31.319 SPEAKER_04: I think we need to answer as part of the IRP update. 01:18:31.319 --> 01:18:38.319 Unknown: What does our decarbonization path look like considering all the challenges in industry today? 01:18:38.319 --> 01:18:45.319 SPEAKER_04: And a follow up to that is really how do we maintain reliable service and affordable rates 01:18:45.319 --> 01:18:47.319 SPEAKER_04: on our path to zero carbon? 01:18:47.319 --> 01:18:53.319 SPEAKER_04: What levers do we have as we go towards zero under these circumstances? 01:18:54.319 --> 01:19:00.319 Unknown: Also, what major generation and grid investments are needed in the coming years to support load growth in the region? 01:19:00.319 --> 01:19:04.319 SPEAKER_04: We know electrification will continue to grow. 01:19:04.319 --> 01:19:09.319 Unknown: There's a lot of reasons folks want to move to EVs at this time, as we know. 01:19:09.319 --> 01:19:14.319 SPEAKER_04: Post 2030, we do anticipate electrification to continue taking off. 01:19:14.319 --> 01:19:17.319 SPEAKER_04: There's also the discussion about large loads. 01:19:17.319 --> 01:19:25.319 SPEAKER_04: And so what does that mean to investments in generation and grid investments? 01:19:26.319 --> 01:19:33.319 Unknown: In the last area, I think we've heard a little bit about this in Josh's presentation tonight, 01:19:33.319 --> 01:19:41.319 SPEAKER_04: but what does the transition to a fully decarbonized grid look like and how will regionalization help? 01:19:41.319 --> 01:19:48.319 SPEAKER_04: We know we're moving to the extended day ahead market here very soon in 2027. 01:19:48.319 --> 01:19:58.319 SPEAKER_04: And there's really a great push to optimize resources across the West with a single body, 01:19:58.319 --> 01:20:04.319 SPEAKER_04: really providing a greater access to renewable resources, lower cost of power, 01:20:04.319 --> 01:20:10.319 SPEAKER_04: but also a lower emissions standing regionally. 01:20:10.319 --> 01:20:14.319 SPEAKER_04: So that's something we wish to explore as part of the IRP. 01:20:19.319 --> 01:20:28.319 Unknown: And as we go through that IRP update, we'll be sharing with the board and the public some of the key areas we need to update. 01:20:28.319 --> 01:20:34.319 SPEAKER_04: And these are many year forecasts of information, customer demand forecasts, 01:20:34.319 --> 01:20:40.319 SPEAKER_04: how does energy efficiency grow, electrification, how does that increase our loads, 01:20:40.319 --> 01:20:46.319 SPEAKER_04: how do our customers continue adding clean, distributed energy resources to their homes and businesses, 01:20:46.319 --> 01:20:51.319 SPEAKER_04: and how can programs help us continue our path to zero carbon. 01:20:51.319 --> 01:20:57.319 Unknown: We also want to know what proven clean technologies are available, at what cost, at what depth, 01:20:57.319 --> 01:21:03.319 SPEAKER_04: as well as what can we consider for new clean emerging technologies going forward. 01:21:03.319 --> 01:21:09.319 SPEAKER_04: When do we expect things like hydrogen fuel to be available to power power plants 01:21:09.319 --> 01:21:17.319 SPEAKER_04: or fuel cells with carbon capture or long duration energy storage technologies. 01:21:17.319 --> 01:21:21.319 Unknown: We'll also reflect all the latest regulatory and market developments, 01:21:21.319 --> 01:21:27.319 SPEAKER_04: as well as all the thermal generation retooling options completed to date and expected, 01:21:27.319 --> 01:21:36.319 SPEAKER_04: as well as any reliability findings that we know of and system limits on inbound transmission to SMUD. 01:21:42.319 --> 01:21:47.319 SPEAKER_04: And the IRP will follow a public process with our board and our community. 01:21:47.319 --> 01:21:54.319 SPEAKER_04: Looking at this timeline here, today, April of 2026, we have the Zero Carbon Plan utility scale update. 01:21:54.319 --> 01:22:00.319 SPEAKER_04: Next week, we have a Zero Carbon Plan forum where we will share similar information with the community 01:22:00.319 --> 01:22:04.319 SPEAKER_04: and have a dialogue about the path forward. 01:22:04.319 --> 01:22:12.319 SPEAKER_04: But really, that first initial IRP update meeting will be scheduled for October 14th, 2026, 01:22:12.319 --> 01:22:19.319 SPEAKER_04: followed up by an IRP community program, outreach program and engagement. 01:22:19.319 --> 01:22:25.319 SPEAKER_04: We're currently working on the details of the board committee meetings through about March, 01:22:25.319 --> 01:22:33.319 SPEAKER_04: as well as the IRP community outreach and engagement plan that we'll look to share in October 2026. 01:22:33.319 --> 01:22:40.319 SPEAKER_04: The plan is to have a board adopted IRP by April 2027 with the filing of that IRP 01:22:40.319 --> 01:22:45.319 SPEAKER_04: with the California Energy Commission in September of 2027. 01:22:46.319 --> 01:22:51.319 SPEAKER_04: We will continue community outreach and updates as we have to this point, 01:22:51.319 --> 01:22:55.319 Unknown: as we have to this point, like we have with the Zero Carbon Plan. 01:22:55.319 --> 01:23:00.319 SPEAKER_04: So much more to share in October, a lot of details to figure out between now and then, 01:23:00.319 --> 01:23:06.319 SPEAKER_04: and we certainly look forward to having the dialogue with the board and with our customers as well. 01:23:08.319 --> 01:23:14.319 Unknown: So with that, I think that brings us to the last slide and happy to answer any remaining questions. 01:23:15.319 --> 01:23:16.319 Unknown: Thank you. 01:23:16.319 --> 01:23:20.319 SPEAKER_11: Well, I just first want to thank you for really good presentations. 01:23:20.319 --> 01:23:23.319 SPEAKER_11: Very clear and understandable. 01:23:23.319 --> 01:23:28.319 SPEAKER_11: I do like the idea of getting a graph on the Zero Carbon part because the carbon is the metric we have. 01:23:29.319 --> 01:23:30.319 SPEAKER_11: A couple questions. 01:23:30.319 --> 01:23:39.319 SPEAKER_11: First, we've said from the beginning that 90% we had figured out and 10% was going to be the question. 01:23:39.319 --> 01:23:42.319 SPEAKER_11: So I just assume we can baseline safe for messaging. 01:23:43.319 --> 01:23:47.319 SPEAKER_11: We're going to hit 90, but the rest of it is going to be the question. 01:23:47.319 --> 01:23:53.319 Unknown: But if that changes, please let me know because we go out a lot, and that's what I have been saying, 01:23:53.319 --> 01:23:57.319 Unknown: that we were going to get hit the 90% with existing technology. 01:23:58.319 --> 01:24:01.319 SPEAKER_06: So let me rephrase it, right? 01:24:01.319 --> 01:24:04.319 SPEAKER_06: So what it is is that I think the plan that we have right now, 01:24:04.319 --> 01:24:09.319 SPEAKER_06: based on what you saw on what we actually had planned, 01:24:09.319 --> 01:24:13.319 SPEAKER_06: is going to be probably between 90%, 92%, right? 01:24:13.319 --> 01:24:17.319 SPEAKER_06: The last 8% was going to be if carbon capture comes to be affordable. 01:24:17.319 --> 01:24:24.319 SPEAKER_06: Now, even with that said, what we have from between the 90%, 92%, 01:24:24.319 --> 01:24:30.319 SPEAKER_06: that is hoping that some of the assumptions for the utility scale, 01:24:31.319 --> 01:24:37.319 Unknown: solar, batteries, geothermal, those things are still within actually the price that we're actually looking at. 01:24:37.319 --> 01:24:42.319 SPEAKER_06: So obviously we made a very long way right now to where it is. 01:24:42.319 --> 01:24:48.319 SPEAKER_06: I think Heidi, I think the answer to your question is that we're still having this goal to get to 100, 01:24:48.319 --> 01:24:52.319 SPEAKER_06: but I think what it is is that what we have on plans right now, 01:24:52.319 --> 01:24:55.319 SPEAKER_06: we have a technical pathway to get to 100. 01:24:56.319 --> 01:25:00.319 SPEAKER_06: But we have some significant challenges because of the fact that utility scale, solar, 01:25:00.319 --> 01:25:03.319 SPEAKER_06: and carbon capture, a lot of things, it's actually gotten more expensive. 01:25:03.319 --> 01:25:07.319 SPEAKER_06: So we won't know exactly what the number will be until we actually finish the IRP. 01:25:07.319 --> 01:25:11.319 SPEAKER_06: But with the, okay, so after the IRP we should have a hard... 01:25:11.319 --> 01:25:14.319 SPEAKER_11: Yes, you would have a much better idea after the IRP. 01:25:14.319 --> 01:25:16.319 SPEAKER_06: So by next year we'll be able to know pretty much? 01:25:16.319 --> 01:25:17.319 SPEAKER_11: Oh, yes. 01:25:17.319 --> 01:25:19.319 SPEAKER_11: Okay. But we feel pretty confident in 85. 01:25:19.319 --> 01:25:23.319 SPEAKER_11: Oh, 80, 85 is actually, by law we have to get to 80. 01:25:24.319 --> 01:25:29.319 SPEAKER_06: Right. So all the stuff that we've been doing has been accelerated beyond what's actually required. 01:25:29.319 --> 01:25:31.319 SPEAKER_06: So I think we're going to team right now. 01:25:31.319 --> 01:25:34.319 SPEAKER_06: We are confident that we'll be over 80 for sure. 01:25:34.319 --> 01:25:39.319 SPEAKER_06: But then I think right now if you ask me to put a number on it right now, 01:25:39.319 --> 01:25:42.319 SPEAKER_06: probably I would guess we'll be like 90, 92. 01:25:42.319 --> 01:25:47.319 SPEAKER_06: And then the hard part, 100% is really predicated on carbon capture. 01:25:47.319 --> 01:25:49.319 SPEAKER_06: And affordability and reliability. 01:25:49.319 --> 01:25:50.319 SPEAKER_11: And affordability, yes. 01:25:50.319 --> 01:25:51.319 Unknown: Okay. 01:25:52.319 --> 01:25:59.319 SPEAKER_11: And when it comes to the carbon capture, that was to me never envisioned in my zero carbon brain when we originally started this. 01:25:59.319 --> 01:26:02.319 SPEAKER_11: And the only reason I was cool with it is because it wasn't really ours. 01:26:02.319 --> 01:26:05.319 SPEAKER_11: I mean, we were just helping them get the grant and then they lost the grant. 01:26:05.319 --> 01:26:06.319 SPEAKER_11: Yes. 01:26:06.319 --> 01:26:09.319 SPEAKER_11: And I mean, we never put money into it or anything like that. 01:26:09.319 --> 01:26:10.319 SPEAKER_11: So, okay. 01:26:10.319 --> 01:26:12.319 SPEAKER_11: Because they are extraordinarily expensive. 01:26:13.319 --> 01:26:16.319 SPEAKER_11: Now, customer contributions. 01:26:17.319 --> 01:26:19.319 Unknown: I've always said we have to keep the public with us. 01:26:19.319 --> 01:26:22.319 SPEAKER_11: And a lot of the public wants to help us. 01:26:22.319 --> 01:26:23.319 SPEAKER_11: And they do help us. 01:26:23.319 --> 01:26:27.319 SPEAKER_11: And we keep increasing our incentives and the rebates, which is wonderful. 01:26:29.319 --> 01:26:36.319 SPEAKER_11: And I guess because when they reduce their load or their generating, you know, that is just a reduced demand for us. 01:26:36.319 --> 01:26:41.319 SPEAKER_11: But is there anything else that the customers can do? 01:26:41.319 --> 01:26:46.319 SPEAKER_11: Is there anything else we can do to elevate their participation in our achieving this goal? 01:26:46.319 --> 01:26:49.319 SPEAKER_11: Because I think honestly they want to help if they can. 01:26:50.319 --> 01:26:52.319 Unknown: So, I think what it is is that let me go ahead and answer that. 01:26:52.319 --> 01:26:58.319 SPEAKER_06: So, if you actually take a look at really what Rachel seems doing is engaging the customer with our different programs. 01:26:58.319 --> 01:27:01.319 SPEAKER_06: So, a couple key things that has to happen, right, that we'll continue to do. 01:27:01.319 --> 01:27:03.319 SPEAKER_06: We always look at the demand response, right? 01:27:03.319 --> 01:27:09.319 SPEAKER_06: What kind of demand response program that when the peak is actually stressed, you know, how do we actually get them to do it? 01:27:09.319 --> 01:27:11.319 SPEAKER_06: How do we reduce the load during peak? 01:27:11.319 --> 01:27:14.319 SPEAKER_06: But then the other big piece is energy efficiency. 01:27:14.319 --> 01:27:19.319 SPEAKER_06: So, any time we can actually help the customer to reduce their load all the time to save them money, 01:27:19.319 --> 01:27:23.319 SPEAKER_06: also that actually save the amount of electricity that we've got to generate. 01:27:23.319 --> 01:27:24.319 SPEAKER_06: So, that's also very helpful. 01:27:24.319 --> 01:27:27.319 SPEAKER_06: And then the big piece is what we call virtual power plants. 01:27:27.319 --> 01:27:32.319 SPEAKER_06: As you know that right now with all the utilities, with the rooftop solar and the batteries, right, 01:27:32.319 --> 01:27:36.319 SPEAKER_06: hopefully one of the big things that's not talked about here is vehicle to grid. 01:27:36.319 --> 01:27:41.319 Unknown: So, that's really what the big thing that we're looking at, you know, you heard, you know, on the presentation, 01:27:41.319 --> 01:27:47.319 SPEAKER_06: vehicle to grid in California by 2035 would have almost like 15 gigawatts. 01:27:47.319 --> 01:27:50.319 SPEAKER_06: And so, I think for smarts consciousness, that's a couple hundred megawatts. 01:27:50.319 --> 01:27:55.319 SPEAKER_06: So, there's still a lot of wild card that's actually happening that we actually, that's what the team is going to look at. 01:27:55.319 --> 01:27:57.319 SPEAKER_06: Really, what is the customer participation? 01:27:57.319 --> 01:27:59.319 SPEAKER_06: What is the different programs that we have? 01:27:59.319 --> 01:28:03.319 SPEAKER_06: And then really, specifically, when do we think vehicle to grid is going to be available? 01:28:03.319 --> 01:28:06.319 SPEAKER_06: Or even if vehicle to home is available? 01:28:07.319 --> 01:28:21.319 SPEAKER_11: And you know, I'd love to participate in that because I sit there, you know, I look at that Audi with that big battery in it all the time and think, wouldn't it be great if I could tap into that and I'm not, yeah, and then not buy a whole other battery wall, even with our rebates, they're still expensive. 01:28:21.319 --> 01:28:22.319 SPEAKER_11: It's still a lot of money. 01:28:22.319 --> 01:28:26.319 SPEAKER_11: Remember doing the heat wave just by asking our customers to shift load. 01:28:26.319 --> 01:28:31.319 SPEAKER_06: We shed 10% of our load, 300 megawatts, just by saying everybody just reduce your use a little bit. 01:28:31.319 --> 01:28:51.319 SPEAKER_06: And this is going to be the kind of challenges going forward to try to get to 100 or try to get to 90 and 95 because as cost gets more, as cost pressures increases, the more customers to participate, the more we can actually utilize with the customer and co-optimize those two systems is really what is going to be one of the key things I know Rachel's teams and the old team is going to look at. 01:28:52.319 --> 01:28:55.319 SPEAKER_11: I'll also remind everybody that things happen very, very quickly. 01:28:55.319 --> 01:29:03.319 SPEAKER_11: And just because of what's happening in the world today, they've already seen an absolutely huge increase in the purchase of EVs around the world. 01:29:03.319 --> 01:29:04.319 Unknown: It's already started. 01:29:04.319 --> 01:29:06.319 SPEAKER_11: So I mean, things can go like that. 01:29:06.319 --> 01:29:13.319 SPEAKER_11: And if we can get them vehicle to grid or at least adaptable, that we could use them in a couple of years, wouldn't that be amazing? 01:29:13.319 --> 01:29:15.319 SPEAKER_11: So anyway, I'm so excited. 01:29:15.319 --> 01:29:18.319 SPEAKER_11: I'm so proud of the staff work that you've all put in. 01:29:18.319 --> 01:29:21.319 SPEAKER_11: I mean, really, we cannot thank you enough. 01:29:21.319 --> 01:29:22.319 SPEAKER_11: You are the A-Team. 01:29:22.319 --> 01:29:23.319 SPEAKER_11: You are team awesome. 01:29:23.319 --> 01:29:26.319 SPEAKER_11: And I'm super, super proud of all of you. 01:29:26.319 --> 01:29:28.319 SPEAKER_11: Thank you very much for all your hard work. 01:29:28.319 --> 01:29:29.319 Unknown: Thank you. 01:29:32.319 --> 01:29:33.319 Unknown: Thank you. 01:29:33.319 --> 01:29:39.319 SPEAKER_00: I kind of have a question along the same lines as Director Sanborn. 01:29:40.319 --> 01:29:50.319 SPEAKER_00: You know, I talk to so many people who want to put solar on their roof to help us out, you know. 01:29:50.319 --> 01:30:05.319 SPEAKER_00: And I see the costs for, you know, electricity going up and up and up and up from, you know, the various assets that we're looking at. 01:30:06.319 --> 01:30:19.319 SPEAKER_00: Do you see us getting to a point where it would be cost comparable to try to engage our customers to have rooftop solar? 01:30:20.319 --> 01:30:36.319 SPEAKER_00: Or is there such a price difference between, you know, the market and what we're paying at the new amount that it would never, that it wouldn't pencil out? 01:30:36.319 --> 01:30:39.319 SPEAKER_00: Because I get that question a lot. 01:30:39.319 --> 01:30:45.319 SPEAKER_00: And so I'm just wondering, is that one way for them to help? 01:30:46.319 --> 01:30:49.319 Unknown: That's a good question, Director Herber. 01:30:50.319 --> 01:31:01.319 SPEAKER_04: One of the problems is, you know, rooftop solar experiences the same price pressures that we are on the utility scale side of things. 01:31:01.319 --> 01:31:02.319 SPEAKER_04: So that's one thing. 01:31:02.319 --> 01:31:09.319 SPEAKER_04: So as utility scale prices are going up, rooftop distributed solar is also going up. 01:31:09.319 --> 01:31:20.319 SPEAKER_04: And we have been working pretty closely with Rachel Long's team to look at maybe some options for more distributed type solar. 01:31:20.319 --> 01:31:27.319 SPEAKER_04: But the challenge, again, is the starting point between utility scale and rooftop. 01:31:27.319 --> 01:31:32.319 SPEAKER_04: There's always a delta of about two to three times the cost relative to utility scale. 01:31:32.319 --> 01:31:35.319 SPEAKER_04: So there is a big cost difference to begin with. 01:31:36.319 --> 01:31:43.319 SPEAKER_04: And now, again, rooftop solar is also experiencing the same run ups and costs that utility scale is. 01:31:43.319 --> 01:31:45.319 SPEAKER_04: So that paradigm has not changed. 01:31:45.319 --> 01:31:48.319 SPEAKER_04: That relationship and pricing has not changed. 01:31:49.319 --> 01:31:50.319 Unknown: Thank you. 01:31:57.319 --> 01:31:58.319 Unknown: Yeah, sure. 01:31:59.319 --> 01:32:11.319 SPEAKER_02: Yeah, well, first of all, thank you very much for all the progress that we've made that, you know, 1.5 megatons per year. 01:32:14.319 --> 01:32:18.319 SPEAKER_02: 1,500 megatons per year reduction. 01:32:20.319 --> 01:32:21.319 Unknown: Metric tons. 01:32:21.319 --> 01:32:23.319 SPEAKER_04: Megawatts or metric tons? 01:32:23.319 --> 01:32:24.319 SPEAKER_04: Metric tons. 01:32:24.319 --> 01:32:25.319 SPEAKER_04: Metric tons, yeah. 01:32:26.319 --> 01:32:28.319 SPEAKER_02: So thank you very much for that. 01:32:28.319 --> 01:32:31.319 SPEAKER_02: That's a significant advance. 01:32:31.319 --> 01:32:41.319 SPEAKER_02: Regardless of what our future projections are, those are things that are going to help now. 01:32:41.319 --> 01:32:52.319 SPEAKER_02: Or at least I know some of those are like in the works, but I guess most of that is actually already built or actually being built. 01:32:53.319 --> 01:33:05.319 SPEAKER_02: So sort of related to Director Herbra's question, it seems to me that the battery incentives that we're providing really gets more value. 01:33:05.319 --> 01:33:17.319 SPEAKER_02: I mean, that doesn't directly incentivize solar, but it sure does make it the value of the solar much higher for our customers. 01:33:17.319 --> 01:33:24.319 SPEAKER_02: And then we're accessing that gives us better access to that resource when we really need it, too. 01:33:24.319 --> 01:33:33.319 SPEAKER_02: And I suppose that's going to be accounted for in our IRP, plus all the other benefits that we get from it. 01:33:33.319 --> 01:33:46.319 SPEAKER_02: And we didn't really talk about that today, but I think that's one way that helps people who are considering getting solar because then it's just more worthwhile for them. 01:33:48.319 --> 01:33:55.319 SPEAKER_04: That's correct. Yeah, we'll be bringing that piece of information, that assumption on growth of programs. 01:33:55.319 --> 01:34:01.319 SPEAKER_04: Paul mentioned VPPs, and so that will be part of the information share. 01:34:01.319 --> 01:34:06.319 SPEAKER_04: What can we expect from the growth of programs that Rachel seems working on? 01:34:06.319 --> 01:34:12.319 SPEAKER_04: And how do those contribute to the reduction in need for gas resources? 01:34:12.319 --> 01:34:19.319 Unknown: Thank you. 01:34:19.319 --> 01:34:24.319 Unknown: A couple of questions. I got them a little bit late. I apologize. 01:34:24.319 --> 01:34:27.319 SPEAKER_07: But I don't think they were covered. 01:34:27.319 --> 01:34:37.319 SPEAKER_07: I was a little bit curious about the role of EDAM participation and how that will potentially fit into the greater 2030 plan. 01:34:37.319 --> 01:34:49.319 SPEAKER_07: Yeah, so that's something that we'll want to evaluate and share with the board and the public as part of the IRP process. 01:34:49.319 --> 01:34:55.319 SPEAKER_04: EDAM, as we know, we're committed to going in 2027. 01:34:55.319 --> 01:35:02.319 SPEAKER_04: That should open the availability to import more clean electrons from the ISO. 01:35:02.319 --> 01:35:10.319 SPEAKER_04: It kind of removes the financial barrier to import more electrons from the ISO. 01:35:10.319 --> 01:35:14.319 SPEAKER_04: Today, we have about 90 percent of our renewables in the ISO. 01:35:14.319 --> 01:35:21.319 SPEAKER_04: And ahead of that, it's about a $15 to $20 a megawatt hour payment to import that energy. 01:35:21.319 --> 01:35:35.319 SPEAKER_04: So it does decrease the cost to import those electrons, but also allows us more access to other lower costs, lower emitting resources across the West. 01:35:35.319 --> 01:35:41.319 SPEAKER_07: I would echo what the other board members have said, thanking the staff for all their hard work. 01:35:41.319 --> 01:35:48.319 SPEAKER_07: Progressing this forward, there's been a lot of work done. We've seen these various contracts come through. 01:35:48.319 --> 01:35:55.319 Unknown: And so I think that's good. I know there's a lot of headwinds. The numbers you gave were accurate. 01:35:55.319 --> 01:36:03.319 SPEAKER_07: And how much more solar? It was 2 to 4 cents. We were writing the climate emergency declaration. 01:36:03.319 --> 01:36:08.319 SPEAKER_07: And things have, if anything, doubled in price as opposed to follow a trendline down. 01:36:08.319 --> 01:36:12.319 SPEAKER_07: And that's just a reality, and there's lots of reasons for it. 01:36:12.319 --> 01:36:20.319 SPEAKER_07: But it's certainly a challenge that we're going to have to deal with. The IRP is going to really take that head on. 01:36:20.319 --> 01:36:27.319 Unknown: Because we were working on this plan, the idea was that these were at least going to stay at those prices, if not continued to trend downwards. 01:36:27.319 --> 01:36:35.319 SPEAKER_07: And so it's much different marketed. 2 cents per kilowatt hour solar versus between 6 and 10. 01:36:35.319 --> 01:36:42.319 SPEAKER_07: And that's just sort of in the back of my mind. It's frustrating to watch. And there's a whole bunch of various reasons. 01:36:42.319 --> 01:36:45.319 SPEAKER_07: But that's just the reality I would correct here. 01:36:45.319 --> 01:36:54.319 SPEAKER_07: I wanted to ask just a little bit about RPS compliance. I haven't seen any RPS compliance updates in a while. 01:36:54.319 --> 01:36:59.319 SPEAKER_07: Come to the board. Where do we stand in general? 01:36:59.319 --> 01:37:10.319 SPEAKER_04: We're in good standing right now through compliance period 5, which ends 2027 with a 52% mark. 52% renewable. 01:37:10.319 --> 01:37:19.319 SPEAKER_04: We believe we've procured working with John Olson and Chad and team enough for knowables to comply with that three-year compliance window. 01:37:19.319 --> 01:37:28.319 SPEAKER_04: 25, 26, 27. For 28 through 20, 30, compliance period 6, we're right at about 60%. 01:37:28.319 --> 01:37:36.319 Unknown: And so right now we're kind of tracking contract performance schedules, that sort of thing, load growth. 01:37:36.319 --> 01:37:42.319 SPEAKER_04: Could move the needle a little bit, but generally we're right at about 60% right now. 01:37:42.319 --> 01:37:44.319 SPEAKER_04: So that's the last couple of minutes. 01:37:44.319 --> 01:37:45.319 SPEAKER_07: Assume what's in the pipeline will show up. 01:37:45.319 --> 01:37:46.319 SPEAKER_07: That's correct. 01:37:46.319 --> 01:37:47.319 SPEAKER_04: Okay. 01:37:47.319 --> 01:37:54.319 SPEAKER_04: Pipeline meaning what's committed. What's committed right now, what's actually signed will get us right at about 60% RPS. 01:37:54.319 --> 01:38:02.319 SPEAKER_04: You may have mentioned this before I got here. Are we feeling pretty confident what's in the pipeline is going to materialize? 01:38:02.319 --> 01:38:12.319 Unknown: There's quite a few options that we've been kind of going back and forth with counterparties. These are real offers. 01:38:12.319 --> 01:38:18.319 SPEAKER_04: And so I do have quite a bit of confidence in the resources we're looking at. 01:38:18.319 --> 01:38:29.319 SPEAKER_04: We have to work with the finance team to make sure what we're eventually going to maybe propose to the board aligns with our affordability metrics. 01:38:29.319 --> 01:38:30.319 SPEAKER_04: Yeah. 01:38:30.319 --> 01:38:41.319 SPEAKER_07: This is something I think that we have all these projects in progress and they're very geographically diverse, but like every project always has a level of risk with it, right? 01:38:41.319 --> 01:38:46.319 SPEAKER_07: Is there going to be a lawsuit? Is something going to fall through? 01:38:46.319 --> 01:38:51.319 SPEAKER_07: So it's sort of hard to know with a lot of these. 01:38:51.319 --> 01:38:54.319 SPEAKER_07: So that's something in my mind. 01:38:54.319 --> 01:39:04.319 SPEAKER_07: I've been thinking a little bit about like when we talk about like renewable, especially solar, are there any opportunities close to us but not necessarily in the county for solar? 01:39:04.319 --> 01:39:08.319 SPEAKER_07: I guess there's something that the bank can access, but it leads to that deeper question. 01:39:08.319 --> 01:39:16.319 SPEAKER_07: Does having a transmission line accessing into bank matter if you're going to have an EDAM market that changes the transaction and transmission costs? 01:39:16.319 --> 01:39:20.319 SPEAKER_07: So it's a much bigger change coming through. 01:39:20.319 --> 01:39:22.319 SPEAKER_07: Just a couple other things. 01:39:22.319 --> 01:39:28.319 SPEAKER_07: On the edge cases, you had that great slide talking about the Tulee Fog we had in November. 01:39:28.319 --> 01:39:45.319 SPEAKER_07: I remember well the 2018 IRP work and that was really where we saw this multiple billion dollar cost of an all renewable energy scenario was the edge case where you had fog for two or three weeks with no wind and no sun. 01:39:45.319 --> 01:39:51.319 SPEAKER_07: So it was looking backwards into the 80s and 90s back then, but we just lived it. 01:39:51.319 --> 01:40:02.319 SPEAKER_07: And so I think it's a really good experiment scenario to put it much closer to a sort of reality that this is what we're going to have to make sure the lights stay on. 01:40:02.319 --> 01:40:12.319 SPEAKER_07: Whatever that resource looks like and just being realistic about it because it still does happen because it just happened. 01:40:12.319 --> 01:40:14.319 SPEAKER_07: Great. So thank you for that. 01:40:14.319 --> 01:40:21.319 SPEAKER_07: Other than that, I had some question about the CCS, carbon capture sequestration affordability. 01:40:21.319 --> 01:40:27.319 SPEAKER_07: I mean, it was somewhere in the range of like 10 cents a kilowatt hour extra for carbon capture. 01:40:27.319 --> 01:40:29.319 SPEAKER_07: You know, and you're seeing some of these prices in Tencent. 01:40:29.319 --> 01:40:31.319 SPEAKER_07: So it's an interesting mix. 01:40:31.319 --> 01:40:36.319 SPEAKER_07: And I'll be curious to see if there is not some technological innovation in that fuel cell. 01:40:36.319 --> 01:40:38.319 SPEAKER_07: I just quickly googled a little bit. 01:40:38.319 --> 01:40:46.319 SPEAKER_07: It wasn't maybe 20 or 25, 50 percent lower carbon capture using some kind of carbonate fuel cell. 01:40:46.319 --> 01:40:51.319 SPEAKER_07: But I need to do far more research and then quit Google search. 01:40:51.319 --> 01:40:53.319 SPEAKER_07: So I thought that was sort of interesting to hear tonight. 01:40:53.319 --> 01:40:56.319 SPEAKER_07: It's some different technology as well. 01:40:56.319 --> 01:41:03.319 SPEAKER_07: I know the other thing I wanted to catch here and then I think I'll cover everything is just the large loads. 01:41:03.319 --> 01:41:11.319 SPEAKER_07: The talk is we're going to need to double the utility grid nationally over the next like five years, maybe 10. 01:41:11.319 --> 01:41:20.319 SPEAKER_07: And so how much in this current planning are you including like really potential high level of loads growth? 01:41:20.319 --> 01:41:23.319 SPEAKER_07: Growth will end up in the IRP. 01:41:24.319 --> 01:41:28.319 SPEAKER_04: Yeah, we'll definitely consider large load. 01:41:28.319 --> 01:41:33.319 SPEAKER_04: You know, the challenge is knowing what you should actually plan for. 01:41:33.319 --> 01:41:41.319 SPEAKER_04: The idea is to maybe look at a sensitivity case to say, hey, over maybe 10 years, here's 400 megawatts. 01:41:41.319 --> 01:41:42.319 SPEAKER_04: What does that look like? 01:41:42.319 --> 01:41:45.319 SPEAKER_04: Right. What type of investments are needed? 01:41:45.319 --> 01:41:49.319 SPEAKER_04: What does that do for our revenue requirement? 01:41:49.319 --> 01:41:52.319 SPEAKER_04: You know, how does that maybe benefit us? Right. 01:41:52.319 --> 01:41:57.319 SPEAKER_04: Those are some of the things we'd want to look at in that area of the plan. 01:41:57.319 --> 01:42:00.319 SPEAKER_04: But yeah, certainly a big consideration. 01:42:00.319 --> 01:42:03.319 SPEAKER_04: We know there's a lot of interest there. 01:42:03.319 --> 01:42:09.319 SPEAKER_04: These types of customers are very thirsty for energy. 01:42:09.319 --> 01:42:14.319 SPEAKER_04: You know, and that's definitely something we'll have to navigate in the IRP. 01:42:15.319 --> 01:42:25.319 Unknown: Because as we look at our marginal cost of generation, which is not a natural gas cost that we talked about last night, 01:42:25.319 --> 01:42:32.319 SPEAKER_07: you can see the contracts that we've signed and what those costs are potentially going to be. 01:42:32.319 --> 01:42:36.319 Unknown: And I know if you look at that as our wholesale price, it's not matching our commercial rates. 01:42:36.319 --> 01:42:42.319 SPEAKER_07: So if you see a large load coming on board, you're somehow going to reconcile those two differences. 01:42:43.319 --> 01:42:49.319 SPEAKER_07: The last thing I just wanted to ponder and think about as we talk about the edge cases, right, 01:42:49.319 --> 01:42:53.319 Unknown: is what does that accounting potentially look like? 01:42:53.319 --> 01:42:58.319 SPEAKER_07: Do we have a separate accounting methodology for the 2030 goal? 01:42:58.319 --> 01:43:04.319 Unknown: Aside from, hey, this is our bid, we're 100% business as usual. 01:43:04.319 --> 01:43:11.319 SPEAKER_07: But if we're going to get these 100 weird scenarios, right, 01:43:11.319 --> 01:43:15.319 SPEAKER_07: do we have, do we allow, do we account for that separately? 01:43:15.319 --> 01:43:19.319 SPEAKER_07: The EPA, in call it's an exceptional event. 01:43:19.319 --> 01:43:24.319 SPEAKER_07: And I think that may be something we should think about as we examine the goal as well. 01:43:24.319 --> 01:43:28.319 SPEAKER_07: It's going to cover the middle 95%. 01:43:28.319 --> 01:43:36.319 SPEAKER_07: And then we'll have some recognition that there may be additional emissions when the reality is that the reliability has to come first 01:43:36.319 --> 01:43:38.319 SPEAKER_07: and the affordability as well. 01:43:38.319 --> 01:43:41.319 SPEAKER_07: Those are my last thoughts. Thank you. 01:43:41.319 --> 01:43:42.319 Unknown: Thank you. 01:43:45.319 --> 01:43:48.319 Unknown: I'd like to add my thanks to staff for this. 01:43:48.319 --> 01:43:55.319 SPEAKER_03: You know, back in 2020, we kind of said go do the impossible, and oh, by the way, keep the lights on and keep the rates low. 01:43:55.319 --> 01:44:00.319 SPEAKER_03: And you know, you're really coming pretty darn close at this point. 01:44:00.319 --> 01:44:03.319 SPEAKER_03: And the pathway is there. 01:44:03.319 --> 01:44:11.319 SPEAKER_03: Obviously, there's some potential hurdles, but we know what they look like, and we know what we need to do to get around them. 01:44:11.319 --> 01:44:17.319 SPEAKER_03: And we'll see what kind of support we get from the federal government eventually. 01:44:17.319 --> 01:44:22.319 SPEAKER_03: And just thank you. It's really an impressive body of work. 01:44:27.319 --> 01:44:30.319 Unknown: So I just want to take a moment to really thank the team. 01:44:30.319 --> 01:44:36.319 SPEAKER_06: I still remember when Director Sanborn talked about, you know, our 2030 Zero Carbon Plan was a moonshot goal. 01:44:36.319 --> 01:44:42.319 SPEAKER_06: And I can just tell you, for the past five years, this team, I mean, I know I see Chad over there a lot of times, 01:44:42.319 --> 01:44:50.319 SPEAKER_06: a lot of the folks who actually is the workhorse, you know, trying to get all those folio done, other renewables done at a reasonable price 01:44:50.319 --> 01:44:52.319 SPEAKER_06: or actually at a very good price. 01:44:52.319 --> 01:44:58.319 SPEAKER_06: I think what's pretty amazing is that if you think, and then I see John over there, John Olsen is sitting over there, you know, running a powerful folio. 01:44:59.319 --> 01:45:09.319 SPEAKER_06: There's so many people here, and then Josh and his whole generation team, right, doing the turn downs, right, doing everything we can to lower all the costs that we have, lower the carbon, 01:45:09.319 --> 01:45:11.319 SPEAKER_06: but then also have economic benefits for us. 01:45:11.319 --> 01:45:13.319 SPEAKER_06: And then Brian, obviously, thank you so much. 01:45:13.319 --> 01:45:22.319 SPEAKER_06: I think when I look back the last five years, when we said it was a moonshot goal, I'm actually extremely, extremely pleased and very proud of what we have accomplished. 01:45:22.319 --> 01:45:30.319 SPEAKER_06: If you think about, besides actually hitting our carbon goals for the five years, our rate is still one of the cheapest in California. 01:45:30.319 --> 01:45:38.319 SPEAKER_06: In fact, while we're doing this, we actually make gains between – we actually got lower than some of the folks that are traditionally up, peer use, are lower than us. 01:45:38.319 --> 01:45:41.319 SPEAKER_06: We actually have closed that gap or actually went below them. 01:45:41.319 --> 01:45:51.319 SPEAKER_06: And then, of course, when you think about reliability, if you look at all the crazy storms that we have, the heat wave that we have last five years, how we've came through, we couldn't be more proud of what we accomplished. 01:45:51.319 --> 01:45:53.319 SPEAKER_06: So I do want to say thank you to the team. 01:45:53.319 --> 01:45:56.319 SPEAKER_06: I mean, I see all over there right now, Rachel, working with the customers. 01:45:56.319 --> 01:45:58.319 SPEAKER_06: I just want to say thank you. 01:45:58.319 --> 01:46:00.319 SPEAKER_06: I mean, it's really amazing how far we've come along. 01:46:00.319 --> 01:46:07.319 SPEAKER_06: You know, in the past five years, I know it's challenging for the next five, but I think this team is – there's any team that can actually do it, this team will be able to deliver. 01:46:07.319 --> 01:46:08.319 SPEAKER_06: Thank you. 01:46:08.319 --> 01:46:10.319 SPEAKER_06: What do you care about the next five? 01:46:10.319 --> 01:46:12.319 SPEAKER_06: I still care. 01:46:12.319 --> 01:46:14.319 SPEAKER_06: I always care. 01:46:14.319 --> 01:46:15.319 Unknown: But it's pretty amazing. 01:46:15.319 --> 01:46:18.319 SPEAKER_06: We know, especially when you talk about the auto, it's going to the moon and back, right? 01:46:18.319 --> 01:46:19.319 SPEAKER_06: I mean, it's going outside of the moon. 01:46:19.319 --> 01:46:21.319 SPEAKER_06: This team is really pretty phenomenal. 01:46:21.319 --> 01:46:23.319 SPEAKER_06: So I just want to say thank you. 01:46:25.319 --> 01:46:26.319 Unknown: Anybody else? 01:46:26.319 --> 01:46:27.319 SPEAKER_09: Yeah, I think I said it earlier. 01:46:27.319 --> 01:46:29.319 SPEAKER_09: I mean, I hear a lot of numbers. 01:46:29.319 --> 01:46:32.319 SPEAKER_09: I was a quantitative economics major. 01:46:32.319 --> 01:46:35.319 SPEAKER_09: So I will err on the side of VA on 80%. 01:46:35.319 --> 01:46:42.319 SPEAKER_09: I think if we can get to 90, 95, I always feel like, you know, overpromising. 01:46:42.319 --> 01:46:44.319 SPEAKER_09: It can get us in a tough situation. 01:46:44.319 --> 01:46:49.319 SPEAKER_09: But I do appreciate the goal because, like I mentioned earlier, like I'm an executive. 01:46:49.319 --> 01:46:53.319 SPEAKER_09: If someone just said 80%, then, you know, we'd probably just hit that. 01:46:53.319 --> 01:46:59.319 SPEAKER_09: So I think it's like a bonus material if we can get, you know, above 90%, 01:46:59.319 --> 01:47:03.319 SPEAKER_09: because I think the amount of work to even just get to 80. 01:47:03.319 --> 01:47:05.319 SPEAKER_09: And I know we feel pretty confident. 01:47:05.319 --> 01:47:06.319 SPEAKER_09: It's fantastic. 01:47:06.319 --> 01:47:11.319 SPEAKER_09: And so any little percentage up is great. 01:47:11.319 --> 01:47:14.319 SPEAKER_09: And then we can, again, reevaluate, right? 01:47:14.319 --> 01:47:18.319 SPEAKER_09: I think the world is seeing challenges that we didn't think were happening. 01:47:18.319 --> 01:47:21.319 SPEAKER_09: We thought the price of everything would go down, right? 01:47:21.319 --> 01:47:22.319 SPEAKER_09: And it's gone up. 01:47:22.319 --> 01:47:27.319 SPEAKER_09: So it's a bit of an article of the onion every day, right? 01:47:27.319 --> 01:47:29.319 SPEAKER_09: So congratulations. 01:47:29.319 --> 01:47:36.319 SPEAKER_09: I'm very happy with the 80% because affordability, as you said, Paul said, everybody said. 01:47:36.319 --> 01:47:42.319 SPEAKER_09: You know, our lovely 3% is just keeping our normal operations. 01:47:42.319 --> 01:47:46.319 SPEAKER_09: And anything above that is a hard decision that we'll all have to make, right? 01:47:46.319 --> 01:47:54.319 SPEAKER_09: If it's above our CPI and maybe prices will dramatically fall or new technologies will come online. 01:47:54.319 --> 01:47:57.319 SPEAKER_09: I know we've been talking about Bloom for 20 years. 01:47:57.319 --> 01:48:00.319 SPEAKER_09: Yay, finally for them now, right? 01:48:00.319 --> 01:48:05.319 SPEAKER_09: But, you know, I remember them coming to the board 18 years ago and I joined it, right? 01:48:06.319 --> 01:48:08.319 SPEAKER_09: So thank you again. 01:48:08.319 --> 01:48:10.319 SPEAKER_09: And I'm excited. 01:48:10.319 --> 01:48:15.319 SPEAKER_09: And I know we have some public comments and some people in the audience. 01:48:15.319 --> 01:48:18.319 SPEAKER_09: So, Mr. It's time for public comment. 01:48:18.319 --> 01:48:21.319 SPEAKER_09: Rick, are you ready to roll? 01:48:28.319 --> 01:48:33.319 Unknown: Yeah, hi, I'm Rick Adina and I'm a 350 Sacramento. 01:48:34.319 --> 01:48:39.319 SPEAKER_01: And most recently I've been with a group called the Save Coyote Creek Coalition. 01:48:39.319 --> 01:48:44.319 SPEAKER_01: And I'm gratified to see that that project is no longer on the list of pending projects. 01:48:44.319 --> 01:48:46.319 SPEAKER_01: And I'd like to thank you, Paul, for that. 01:48:46.319 --> 01:48:54.319 SPEAKER_01: And also I'd like to remind you that even though you are retiring, you can come back and make comments if you're passionate enough. 01:48:55.319 --> 01:49:04.319 Unknown: In this organization and meeting the climate goals, I've been gone 12 years and look at me, dang, and I'm still here. 01:49:06.319 --> 01:49:13.319 SPEAKER_01: I would like to say that after Coyote Creek and some of the discussion with some of the board members, 01:49:13.319 --> 01:49:17.319 SPEAKER_01: it was agreed that we would start a new process and that has begun. 01:49:17.319 --> 01:49:21.319 SPEAKER_01: And I would like to say we had a very successful meeting yesterday. 01:49:21.319 --> 01:49:24.319 SPEAKER_01: And I'd like to thank SMUD staff. 01:49:24.319 --> 01:49:35.319 SPEAKER_01: That would be Amanda Beck, Sarah Cheney, Kathleen Anfay, and Andrew Kosen for meeting with us to review a project which Josh alluded to, 01:49:35.319 --> 01:49:38.319 SPEAKER_01: a 275 megawatt project. 01:49:38.319 --> 01:49:39.319 SPEAKER_01: It hasn't been released yet. 01:49:39.319 --> 01:49:41.319 SPEAKER_01: We got a preview of it. 01:49:41.319 --> 01:49:48.319 SPEAKER_01: And I have to say thanks for letting us look it over and have our comments in the record. 01:49:49.319 --> 01:49:57.319 SPEAKER_01: The project looks great to us so far, as does another, which is a 300-plus megawatt in the wings near Wilton. 01:49:57.319 --> 01:50:02.319 SPEAKER_01: But, you know, everything is taking its time. 01:50:02.319 --> 01:50:04.319 SPEAKER_01: We saw that with Country Acres, Curry Creek. 01:50:04.319 --> 01:50:08.319 SPEAKER_01: These two projects, we're not going to see them until 2031 or something. 01:50:08.319 --> 01:50:11.319 SPEAKER_01: So that's actually beyond the 2030 goal. 01:50:11.319 --> 01:50:13.319 SPEAKER_01: So it is a little bit worrisome. 01:50:13.319 --> 01:50:16.319 SPEAKER_01: We only have four, five years maybe. 01:50:16.319 --> 01:50:25.319 SPEAKER_01: And it looks like we're going to be leaning heavily on carbon sequestration from Sutter and from this new fuel cell technology, which I hope pans out. 01:50:25.319 --> 01:50:33.319 SPEAKER_01: I think it's probably a good idea that the Campbell and Proctor plants are being repurposed for now. 01:50:33.319 --> 01:50:38.319 SPEAKER_01: We expected that they would have been retired at this point. 01:50:39.319 --> 01:50:44.319 SPEAKER_01: But it looks as though that they're going to be a lot more efficient and used a lot less in the future. 01:50:44.319 --> 01:50:52.319 SPEAKER_01: But we now have the ominous rise of the data centers, which is extremely worrisome as well. 01:50:52.319 --> 01:50:54.319 SPEAKER_01: It could be adding quite a bit of load. 01:50:54.319 --> 01:51:02.319 SPEAKER_01: And so we're waiting to see how SMUD is going to be dealing with those. 01:51:03.319 --> 01:51:12.319 SPEAKER_01: I would say that I'm looking forward, having once worked in that area, on the new IRP and how all of these questions are going to be addressed. 01:51:12.319 --> 01:51:14.319 SPEAKER_01: So good luck to you guys on that. Thank you. 01:51:21.319 --> 01:51:24.319 SPEAKER_09: I think I was the only one. Was there anybody? Okay. 01:51:24.319 --> 01:51:33.319 Unknown: I'm encouraged to be reminded that we'll have an opportunity to listen to Paul when he comes back in his retirement to tell us what we could do better. So thanks. 01:51:36.319 --> 01:51:42.319 Unknown: I'd like to suggest that in light of his long tenure here, when he does come back, maybe we give him three and a half minutes. 01:51:44.319 --> 01:51:48.319 SPEAKER_09: I do not see any comments from the agenda. 01:51:48.319 --> 01:51:50.319 SPEAKER_09: I don't see any virtual comments either. 01:51:50.319 --> 01:51:52.319 SPEAKER_10: Okay, great. 01:51:53.319 --> 01:52:04.319 SPEAKER_09: If we receive written comments, items on the agenda, also same with public comment, they will be included into our record if received within two hours. 01:52:04.319 --> 01:52:10.319 SPEAKER_09: I believe we had one item on the summary committee direction that I recorded. 01:52:11.319 --> 01:52:23.319 Unknown: I have a staff will provide information to the board regarding the range of GHD emissions for Campbell's and McClellan and include information about when we run the plants for reliability versus economics. 01:52:23.319 --> 01:52:31.319 SPEAKER_10: We'll provide information to the board about who bears the carbon risk when we run proctors, auxiliary boilers to provide steam to proctor and gamble. 01:52:31.319 --> 01:52:37.319 SPEAKER_10: And then in the next zero carbon update, we'll provide a graph showing GHD reductions over time. 01:52:38.319 --> 01:52:39.319 Unknown: Yes. 01:52:39.319 --> 01:52:42.319 SPEAKER_09: Okay. Thank you.