Unknown: your
Unknown: father
Unknown: That's in five seconds.
SPEAKER_05: Five seconds, please.
Unknown: Five seconds.
Unknown: All right.
SPEAKER_08: Good evening and welcome to the Energy Resources and Customer Services Committee and Special
SPEAKER_08: Board Meeting of September 17, 2025.
SPEAKER_08: This meeting is being recorded and can be accessed on SMUD's website.
SPEAKER_08: Please remember to unmute your microphone when speaking in order that our virtual attendees
SPEAKER_08: may hear.
SPEAKER_08: The microphone will display a green indicator light when the mic is on.
SPEAKER_08: For members of the public attending in person that wish to speak at this meeting, please
SPEAKER_08: fill out a speaker's request form located on the table outside the room and hand it
SPEAKER_08: to SMUD security.
SPEAKER_08: Members of the public attending this meeting virtually that wish to provide verbal comments
SPEAKER_08: during the committee meeting may do so by using the raised hand feature in Zoom or by
SPEAKER_08: pressing star nine on telephone.
SPEAKER_08: At the time public comment is called, technical support staff will enable the audio for you
SPEAKER_08: when your name is announced during the public comment period.
SPEAKER_08: You may also submit written comments by emailing them to publiccommentatsmud.org.
SPEAKER_08: Written comments will not be read into the record but will be provided to the board electronically
SPEAKER_08: and placed in the record of the meeting if received within two hours after the meeting
SPEAKER_08: ends.
SPEAKER_08: Will the Chief Legal Officer please conduct a roll call?
SPEAKER_03: Director Tamayo?
SPEAKER_08: Here.
SPEAKER_03: Dr. Sanborn?
Unknown: Chair Rose?
Unknown: I'm here.
Unknown: Director Tamayo and Chair Rose are present.
SPEAKER_03: Director Sanborn is absent.
SPEAKER_03: Also present are directors Bowie Thompson, Herber, Kurth and President Fishman.
SPEAKER_08: Perfect.
SPEAKER_08: Thank you.
SPEAKER_08: And then tonight, I don't want to run on tonight's agenda is provide the board an update on the
SPEAKER_08: status of customer programs under the 2030 zero carbon plan.
SPEAKER_08: And we have Rachel Wong, our Director of Distributed Energy Solutions.
SPEAKER_08: Welcome.
Unknown: Okay.
SPEAKER_09: Good evening, board.
SPEAKER_02: It's wonderful to see you.
SPEAKER_02: As Director Rose mentioned, my name is Rachel Wong.
SPEAKER_02: I'm the Director of Distributed Energy Solutions.
SPEAKER_02: Last year you may recall that Ed Hamzawi actually did this presentation and I think it was his
SPEAKER_02: last board meeting before he retired.
SPEAKER_02: So it was like, who's it going to be?
SPEAKER_02: Who's it going to be?
SPEAKER_02: So it's me.
SPEAKER_02: Surprise.
SPEAKER_02: So actually with Ed's retirement, they combined the strategy organization with the delivery
SPEAKER_02: organization.
SPEAKER_02: So now I have both under my purview, which is fantastic.
SPEAKER_02: So tonight I'm going to be sharing our progress towards our 2030 zero carbon plan through
SPEAKER_02: our customers and our different initiatives.
SPEAKER_02: And just before I start, it's definitely a privilege to have both the strategy all the
SPEAKER_02: way through the delivery organizations.
SPEAKER_02: But Distributed Energy Resources and customer programs are something that really literally
SPEAKER_02: touch every single part of the organization.
SPEAKER_02: So I started off by thinking, oh, who I need to appreciate and thank and recognize that
SPEAKER_02: they all contribute towards the outcomes of this.
SPEAKER_02: And it's just too many to list.
SPEAKER_02: So I just want to acknowledge all the different teams that really enable us to be able to
SPEAKER_02: deliver these amazing programs to our customers every day.
SPEAKER_02: Next slide.
SPEAKER_02: So I'm just going to start, you're very familiar with this slide, but recall that our zero
SPEAKER_02: carbon plan really places an importance of our customer programs and initiatives.
SPEAKER_02: And they actually play a role in multiple facets of our zero carbon plan.
SPEAKER_02: We've done so in a way to make sure that our customers are able to be part of the solution
SPEAKER_02: as we achieve zero carbon.
SPEAKER_02: So first, you know, Smud's customers are utilizing renewable energy and installing battery storage
SPEAKER_02: systems to support proven clean technology.
SPEAKER_02: We've launched a number of new technology and business model approaches where Distributed
SPEAKER_02: Energy Resources can help us achieve our zero carbon goal.
SPEAKER_02: We're working to decarbonize buildings and transportation as that's really the lowest
SPEAKER_02: hanging fruit as we think about carbon emissions reductions while affording to support energy
SPEAKER_02: affordability.
SPEAKER_02: We've leveraged grants and partnerships to help support these DER program efforts by
SPEAKER_02: adding external sources of funding to keep our rates low.
SPEAKER_02: And we're definitely working to maximize the community benefits from the efforts we're
SPEAKER_02: taking as it relates to inclusive economic development as well as making sure that we're
SPEAKER_02: supporting our under resourced communities.
SPEAKER_02: Next slide.
SPEAKER_02: So our zero carbon plan and our zero carbon customer programs fall within four major portfolios.
SPEAKER_02: And each of these I'll end up going into more detail.
SPEAKER_02: What I'll do is I'll talk about our progress towards our goals for our zero carbon plan.
SPEAKER_02: We'll talk about some key milestones that we've achieved in the last year.
SPEAKER_02: Talk about what we are looking ahead at relative to that portfolio and then I'll feature some
SPEAKER_02: of our key notable projects within that portfolio.
SPEAKER_02: So I will just start off with caveating that there are many, many wonderful projects to
SPEAKER_02: feature and it was very, very hard.
SPEAKER_02: It's like picking your favorite child, right?
SPEAKER_02: But really I tried to focus and identify a couple key projects.
SPEAKER_02: But definitely want to express my appreciation, especially to the board who have gone out
SPEAKER_02: and given the checks and celebrated all of those very many projects that have been very
SPEAKER_02: successful in contributing towards the delivery of our goals for all of these portfolios.
SPEAKER_02: The other thing to note is that we have a number of projects as well as programs that
SPEAKER_02: span multiple portfolios.
SPEAKER_02: So what I've done is I've put those programs in the portfolio in which it best aligns to
SPEAKER_02: the outcome.
SPEAKER_02: I actually probably changed one where Ed had it in one and I moved it to another.
SPEAKER_02: The example would be managed EV charging, which you would think is transportation electrification.
SPEAKER_02: But really from an outcome standpoint we are measuring its performance as we think about
SPEAKER_02: megawatts and capacity.
SPEAKER_02: So we are going to be talking about it tonight in load flexibility.
SPEAKER_02: But just to give you some ideas and you will see some of the projects that are featured
SPEAKER_02: that actually we have some customers that are participating in multiple of our program
SPEAKER_02: portfolios which really speak to them being highly engaged.
SPEAKER_02: So our four portfolios are building electrification energy efficiency, transportation electrification,
SPEAKER_02: energy resources and load flexibility, although I'm probably just going to call it load flexibility
SPEAKER_02: because I feel like all of these are distributed energy resources, and then finish up with
SPEAKER_02: our green pricing programs.
Unknown: Okay.
SPEAKER_02: Next slide.
SPEAKER_02: So building electrification and energy efficiency.
SPEAKER_02: So I did mention earlier that the lowest hanging fruit for reducing greenhouse gas emissions
SPEAKER_02: in our territory and in California really are transportation and buildings.
SPEAKER_02: And buildings is the number, the second largest source.
SPEAKER_02: And so really as we decarbonize our energy supply of SMUD, we are not only supporting
SPEAKER_02: the decarbonization of buildings, but we are actually eliminating direct combustion of
SPEAKER_02: fossil fuels through increasing the efficiency of electric equipment.
SPEAKER_02: And because our electricity rates are low compared to PG&E gas rates and the trajectory
SPEAKER_02: of the rate growth, because we have seen that building electrification is actually also
SPEAKER_02: the best way for our customers to actually save on their overall energy bill.
SPEAKER_02: Here to date, just to give you some perspective, from a carbon reduction saving standpoint,
SPEAKER_02: our building electrification and energy efficiency programs combined have saved a total of 119,638
SPEAKER_02: metric tons of carbon dioxide equivalent.
SPEAKER_02: By shifting our customers to efficient electric appliances, we're actually complementing our
SPEAKER_02: supply side renewable energy commitments and helping our customers save from a carbon emission
SPEAKER_02: saving standpoint.
SPEAKER_02: This is both by them being able to utilize more of those renewable energy resources
SPEAKER_02: within our portfolio, but also reducing the fossil fuel usage within their home.
SPEAKER_02: In terms of energy bill savings, and you've probably heard this statistic a couple times,
SPEAKER_02: but the transition from gas, water heating, and space heating stand to save an estimated
SPEAKER_02: average annual energy bill savings for our residential customers of up to $500 a year.
SPEAKER_02: And based upon what we're projecting rate increases to be, could grow to as high as
SPEAKER_02: an estimated $900 per year by 2030.
SPEAKER_02: Next slide.
SPEAKER_02: So this is the first set of charts, so I'm just going to explain what they are.
SPEAKER_02: So can I ask you a question about that, what you just said?
SPEAKER_08: We did a lot of that foundational work in the 2018 IRP.
SPEAKER_08: Is that something that we're going to go back and look at over the next year as we update
SPEAKER_08: our integrated resource planning?
SPEAKER_08: Yes.
SPEAKER_02: It's definitely an opportunity for us to look at that in some scenarios.
SPEAKER_02: Because it was that holistic approach, right, where we were looking at, okay, if we electrify,
SPEAKER_08: people are going to save off their gas bill, even though their electricity bill is going
SPEAKER_08: to go up, but they're going to save money overall, and we get air quality benefits,
SPEAKER_08: and so it's sort of just a win-win across the board.
SPEAKER_08: Exactly.
SPEAKER_02: Yeah, so definitely a priority to look at as we embark upon our IRP.
SPEAKER_02: So this is the first set of charts.
SPEAKER_02: You'll see this replicated across all the different portfolios, so I'm going to take
SPEAKER_02: a little bit of time to explain them, and they vary slightly as we go through the different
SPEAKER_02: portfolios.
SPEAKER_02: But on this chart, I want you to first look at the chart on the right-hand side.
SPEAKER_02: And so on the right-hand side, the lower curve that goes all the way to 2030 is the line
SPEAKER_02: of the goals that were developed as part of our zero carbon plan.
SPEAKER_02: So those were the numbers that we identified back in 2021 when we developed our zero carbon
SPEAKER_02: plan.
SPEAKER_02: And so what you can see in this chart is that our goal by 2030 is 154,000 all-electric
SPEAKER_02: equivalent homes.
SPEAKER_02: That's 112,000 as the incremental off of the baseline of 42,000.
SPEAKER_02: And what you can see from the shorter line or the red line with the red dot is that we
SPEAKER_02: are actually tracking, exceeding our zero carbon plan goals for the years, both where
SPEAKER_02: we ended 2024 as well as where we are forecasting for 2025.
SPEAKER_02: Now if you look at the graph on the left, you might be confused because you're like,
SPEAKER_02: okay, you say you're exceeding your goal on the right-hand side, but on the left-hand
SPEAKER_02: side, you're under the blue or the full line that goes to the end of the year.
SPEAKER_02: So why is that?
SPEAKER_02: So if you look at the numbers in our 2030 plan, we have been making really good progress
SPEAKER_02: in our EE and BE portfolios.
SPEAKER_02: And you can see that we ended the year last year at 68,865.
SPEAKER_02: And so we're smud and we like to stretch, but also we recognize that in order to really
SPEAKER_02: transform the market, we really need to continue to have an aggressive growth rate because
SPEAKER_02: that's really customers adopting, building electrification that will show policymakers
SPEAKER_02: that this is possible.
SPEAKER_02: So we actually set our annual goal for 2025, looking at what that incremental change is
SPEAKER_02: between 2024 and 2025 and tried to set it from that starting point of where we ended
SPEAKER_02: 2024.
SPEAKER_02: A little bit less because we knew that from a budgetary standpoint, how we were thinking
SPEAKER_02: about things.
SPEAKER_02: The other thing that I'll just mention that we started the year on is you recall that
SPEAKER_02: there's a lot of funding that was planned from the Inflation Reduction Act.
SPEAKER_02: And so one of the things we're doing as we are looking at those aggressive goals is we
SPEAKER_02: want to stretch the dollar as far as we can.
SPEAKER_02: And so one of the things we did in 2024 is we actually lowered our incentive starting
SPEAKER_02: the year in 2025 because we had the assumption of stacking the incentive, stacking on here
SPEAKER_02: incentives, stacking on tech incentives.
SPEAKER_02: And we talked about this with all of you when I came to talk to the board in June about
SPEAKER_02: energy efficiency and building electrification, but that's definitely some of the headwinds
SPEAKER_02: that we're facing.
SPEAKER_02: So while we are overall from these graphs basically showing we're on track or actually
SPEAKER_02: exceeding where we had planned to be from a zero carbon plan standpoint, just starting
SPEAKER_02: to foreshadow that we're facing some challenges as it relates to achieving our goals.
SPEAKER_02: Next slide.
SPEAKER_02: So we are facing headwinds, but there's definitely a lot to celebrate.
SPEAKER_02: So I want to kind of recognize all of those things.
SPEAKER_02: We will be issuing a press release soon to actually celebrate that our Advanced Home
SPEAKER_02: Solutions Program, which is our residential retrofit building electrification program,
SPEAKER_02: has actually hit a key milestone this year.
SPEAKER_02: So from the inception of our building electrification incentives back in 2018, we've actually achieved
SPEAKER_02: the installation of over 20,000 heat pumps in our service territory.
SPEAKER_02: And that's both space heating and water heating combined.
SPEAKER_02: So we're at about 15,000 heat pump HVAC conversions and over 5,000 heat pump water heater installations.
SPEAKER_02: It's definitely something to celebrate because as I mentioned, one of the key things that
SPEAKER_02: we've been trying to accomplish from a strategy standpoint is really driving that market transformation.
SPEAKER_02: And because of the differential in rates between our rates and PG&E's gas rates, you know,
SPEAKER_02: the CC is looking at us, which is like, hey, you guys have that financial incentive for
SPEAKER_02: customers to do building electrification.
SPEAKER_02: Are customers adopting?
SPEAKER_02: Do you have contractors in your network to be able to support this?
SPEAKER_02: Is the ecosystem there as they think about regulations relative to code?
SPEAKER_02: So speaking of contractors, our SMUD contractor network in the last 12 months has actually
SPEAKER_02: grown significantly.
SPEAKER_02: So we've actually added 100 contractors to new contractors to our contractor network
SPEAKER_02: to total now 340 approved contractors in our SMUD contractor network.
SPEAKER_02: Also from an accessibility standpoint, the directory for the contract network as well
SPEAKER_02: as the platform are accessible both by the contractors and our customers in 11 different
SPEAKER_02: languages.
SPEAKER_02: English, Spanish, Chinese, Arabic, Russian, French, Hindi, Filipino, Vietnamese, Mer and
SPEAKER_02: Japanese.
SPEAKER_02: So so far this year we've actually had 205 of the 340 contractors participate in either
SPEAKER_02: a residential or a commercial rebate programs.
SPEAKER_02: We've had over 30,000 customer searches performed and over 3,000 leads sent out to the contractors
Unknown: through the SMUD contractor network directory.
SPEAKER_02: So we're really definitely building that base of contractors that can help support this
SPEAKER_02: industry.
SPEAKER_02: The other thing that we've done is we now have automated surveys that are live for the
SPEAKER_02: contractor network.
SPEAKER_02: So contractors receive an automated email from each lead when the customer basically
SPEAKER_02: submits a lead.
SPEAKER_02: And the contractor can either accept or decline it.
SPEAKER_02: But now we're sending customer surveys automatically 30 days after a customer sends a lead.
SPEAKER_02: And that actually helps us collect feedback on the customer's experience with the contractor
SPEAKER_02: and the directory.
SPEAKER_02: That can be used in the contractor score factor.
SPEAKER_02: That's the algorithm to display the top three.
SPEAKER_02: And really helps us monitor how the customers are performing and the customer perceptions
SPEAKER_02: of those contractors.
SPEAKER_02: I know in past years there's been concern about, hey, are contractors not offering building
SPEAKER_02: electrification?
SPEAKER_02: This is a pathway for us to be able to collect information on every lead to the contractor
SPEAKER_02: network and how that customer experience is going.
SPEAKER_02: The other thing that we've added with that is that we've actually integrated with the
SPEAKER_02: Better Business Bureau.
SPEAKER_02: And that actually allows our customers to search and filter for those contractors that
SPEAKER_02: hold the Better Business Bureau.
SPEAKER_02: We've added from a customer experience standpoint that we launched in April is, as you know,
SPEAKER_02: as commercial customers want to do electrification, whether it's building electrification or transportation
SPEAKER_02: often they need to look at what the grid capacity evaluation work is to be able to understand
SPEAKER_02: if there's capacity to do that electrification.
SPEAKER_02: In April we launched a new process that actually leverages the Power Clerk platform that you're
SPEAKER_02: familiar with.
SPEAKER_02: It actually automates and streamlines this grid capacity evaluation review process.
SPEAKER_02: It's standardizing data capture.
SPEAKER_02: It's minimizing manual entry to reduce errors.
SPEAKER_02: The software actually ensures a consistent workflow and also ensures compliance across
SPEAKER_02: all the reviews of these requests.
SPEAKER_02: And it also provides near real-time tracking of the progress which really enables that
SPEAKER_02: transparency and accountability of moving things through the process.
SPEAKER_02: The platform enables seamless collaboration between my team, the strategic account advisors
SPEAKER_02: and customer contractors, customers, distribution planning.
SPEAKER_02: It's really helped to improve communication and operational efficiency.
SPEAKER_02: As we think about growth of volume to support this, being able to do so should be able to
SPEAKER_02: create some efficiencies to create more capacity to be able to address this.
SPEAKER_02: And so far as a result of this process improvement, evaluation times have been reduced by as much
SPEAKER_02: as 41%, which has enabled quicker project timelines and better handling of electrification
SPEAKER_02: protocols.
SPEAKER_02: And then the standardization has actually helped improve the data quality as we think
SPEAKER_02: about these and as well as enhanced accuracy in processing these evaluations.
SPEAKER_02: Another thing to sell...
SPEAKER_02: Oh, go ahead.
Unknown: Okay.
Unknown: The tool sounds really interesting.
SPEAKER_08: So when you're looking at that capacity analysis, is that for the individual house and the local
SPEAKER_08: transformer is connected to?
SPEAKER_08: Or are we looking at...
SPEAKER_08: So this is for commercial customers to see if any grid updates need to be made for commercial.
SPEAKER_08: Maybe if we visit the Power Clerk booth at Distribute Act, so show us the EMO.
SPEAKER_08: We're actually doing quite a bit with that.
SPEAKER_02: Another thing to celebrate is we've had...
SPEAKER_02: We started off obviously with residential building electrification incentives and then
SPEAKER_02: we moved into commercial.
SPEAKER_02: But commercial building electrification has definitely taken off.
SPEAKER_02: We've simplified the rebate structure to a per ton or per unit deemed incentive.
SPEAKER_02: We've actually also added infrastructure upgrade incentives that help customers make that transition
SPEAKER_02: to decarbonize.
SPEAKER_02: And we've gotten a lot of really good positive feedback from our contractors as well as customers
SPEAKER_02: and definitely seen a large influx of interest in new projects in the pipeline.
SPEAKER_02: We see this both with market rate commercial projects as well as we've seen actually a
SPEAKER_02: really large uptick with regards to commercial projects in the community impact pan as well,
SPEAKER_02: which I know Dr. Webster talked about a couple of weeks ago.
SPEAKER_02: That electrification momentum is really, really strong.
SPEAKER_02: Year to date, we have 22 businesses under the community impact plan that have completed
SPEAKER_02: projects with 78 measures finished.
SPEAKER_02: The first of two projects that were done in that garden land Northgate area.
SPEAKER_02: And the pipeline of projects have actually almost doubled since November of 2024, which
SPEAKER_02: has been driven by new project proposals.
SPEAKER_02: So what are key things that are going on relative to the heat fund adoption?
SPEAKER_02: Why are we below that annual planning goal?
SPEAKER_02: And really, as I mentioned, we started off the year with lower incentives because we
SPEAKER_02: were looking for stacking.
SPEAKER_02: And what we saw by the first quarter of the year is that we lost the HERA funding.
SPEAKER_02: So that's the home electrification and appliances rebate program, sorry, all the H's and the
SPEAKER_02: E's and the R's and the A's.
SPEAKER_02: That was the flow through from the Investment Recovery Act into the CEC for these rebates.
SPEAKER_02: So that has been reinstated, but in Northern California, I think single family and low
SPEAKER_02: and moderate income are still closed.
SPEAKER_02: So those are no longer available.
SPEAKER_02: One of the things we saw that because we were losing the stacking of funding is by July,
SPEAKER_02: we did see a slowdown.
SPEAKER_02: So by July, we actually increased our rebates by $500.
SPEAKER_02: We also saw tech get reinstated in that July timeframe.
SPEAKER_02: So we've seen an uptick, but we still don't think we're going to be able to make our annual
SPEAKER_02: goal for the year.
SPEAKER_02: So the other thing is we did see some increases in pricing because of tariffs.
SPEAKER_02: And you know, electrification is prone because heat pumps and H-track systems do rely heavily
SPEAKER_02: on imported compressors, electronics, and specialized materials.
SPEAKER_02: So that's something that's really impacting the market right now as well.
SPEAKER_02: So we have some headwinds.
SPEAKER_02: What are we going to do about it?
SPEAKER_02: One thing is continuing to educate our customers about the bill savings that they can achieve
SPEAKER_02: from building electrification.
SPEAKER_02: You may recall that the City of Sacramento launched the Zero Home Tool, which is an online
SPEAKER_02: tool that residential customers can put in their address and kind of get some recommendations
SPEAKER_02: with regards to measures that they can take, including electrification measures.
SPEAKER_02: So we'll be working to launch that Zero Home Tool across our service territory.
SPEAKER_02: We're going to be targeting customers even more than we do today that we might think
SPEAKER_02: have equipment that's at its end of useful life, so ready for replacement.
SPEAKER_02: We are scoping out how to advance a turnkey water heater program.
SPEAKER_02: We know that water heaters, about 90 percent of them, are replaced upon burnout.
SPEAKER_02: So seeing what opportunities are there to make that a much easier experience for our
SPEAKER_02: customers.
SPEAKER_02: We are looking at continued work to identify some kind of cost barriers.
SPEAKER_02: So I know we talked about financing in the past.
SPEAKER_02: We're looking at pays.
SPEAKER_02: So that's something that we've been exploring.
SPEAKER_02: And then, as you know, Title 24, the 2025 version, while it didn't mandate all electric,
SPEAKER_02: did make it more difficult not to build all electric.
SPEAKER_02: So we do need to evolve our new construction program, given the changes in the Title 24.
SPEAKER_02: Now we also know that at a statewide level there's already been indications they are
SPEAKER_02: not planning on updating Title 24 in 2028 for all electric.
SPEAKER_02: So that'll be some of the head's wins that we're facing from a policy perspective.
SPEAKER_02: And so as reported to the board in June, following our potential study analysis and
SPEAKER_02: additional analysis, we will be working in our integrated resources plan to identify
SPEAKER_02: what that new trajectory of goals are for EE and BE.
SPEAKER_08: So Rachel, you just gave a bunch of concrete details about how do you deal with the barriers.
SPEAKER_08: But a couple, I've heard that we've talked about our strike team.
SPEAKER_08: And so do we actively have GO teams with equipment ready to go to replace these hot water heaters,
SPEAKER_08: or is that something we're looking at adding?
SPEAKER_02: So we're looking at what would it take to do a turnkey heat pump water heating so you've
SPEAKER_02: got all the components right.
SPEAKER_02: Because normally when you change out your heat pump water, your water heater, you have
SPEAKER_02: a plumber, but you don't necessarily need electrical.
SPEAKER_02: So kind of putting the pieces together to have a certain turnaround time to be able
SPEAKER_02: to do so quick enough.
SPEAKER_02: Because when someone's water heater breaks, the first thing they want is a hot shower,
SPEAKER_02: and they're not willing to wait long enough.
SPEAKER_02: So it's trying to address all of those elements.
SPEAKER_02: So we do part of it, but there's definitely more pieces to try to align.
SPEAKER_02: We need to make sure we've got all the pieces and that they're done, they're orchestrated
SPEAKER_02: to be able to accomplish in a certain amount of time so that customers don't make a different
SPEAKER_02: decision.
SPEAKER_08: That's the reality of it.
SPEAKER_08: And then the other thing you'd mention, right, is financial barriers.
SPEAKER_08: What's alluded to, of course, is on-bill.
SPEAKER_08: Some kind of on-bill finance, which you've certainly seen the CPUC and the IOUs deep
SPEAKER_08: into that, but it's a very tricky policy area.
SPEAKER_08: What time of...
SPEAKER_08: Where does that thought process stand and what are the next steps to doing something
SPEAKER_08: like that?
SPEAKER_02: So we've been looking at it for quite some time, and we've looked at 0% financing, and
SPEAKER_02: then you had the bank crisis, and then we looked at buying down the interest rate.
SPEAKER_02: Now interest rates are high, and so we've kind of gone through those processes.
SPEAKER_02: We've definitely been watching the pay-as-you-save model in the different states that it's been
SPEAKER_02: going on.
SPEAKER_02: There's actually some pilots that are going on in California as well with the IOUs that's
SPEAKER_02: being funded by tech.
SPEAKER_02: However, those are, I think my understanding is, are being subsidized, right?
SPEAKER_02: So how do you find that cost equation?
SPEAKER_02: We've been running some financial models, and we're having the conversation internally,
SPEAKER_02: but I think there's a number of factors that we still have to kind of look at to see what
SPEAKER_02: would be the best approach from a financing or financing-like type instrument.
SPEAKER_02: So we're in the exploration phase, as I would say, and not because we're starting to explore.
SPEAKER_02: We've been exploring for a while, but really trying to nail down, like, what does this
SPEAKER_02: picture look like?
SPEAKER_02: What would the cost be?
SPEAKER_02: Are we recouping our costs with regards to that?
SPEAKER_02: What's the financial risk associated with lending out the funding?
SPEAKER_02: I don't know if lending's the right word, if it's pays, but all of those different elements
SPEAKER_02: are things that we need to work through.
SPEAKER_08: Because I know, like, the treasurer's office runs Financing Fair.
SPEAKER_08: Like, this stuff is all well developed, and so we certainly don't have to recreate the
SPEAKER_08: wheel to do that smud, but there's definitely financial implications and risks associated
SPEAKER_08: with any kind of lending as well.
SPEAKER_08: So I'll look forward to hearing continued updates about how that progresses.
SPEAKER_08: Sure.
Unknown: Okay.
SPEAKER_02: Okay.
SPEAKER_02: Any other questions?
Unknown: Do you have a question?
SPEAKER_08: Go ahead.
SPEAKER_04: Yeah, sorry.
SPEAKER_04: You said something with water heaters, right?
SPEAKER_04: Yeah, you don't replace it until it breaks, and when it breaks, you need it like now,
SPEAKER_04: and there's clean-up sometimes, and it's...
SPEAKER_04: So are we looking...
SPEAKER_04: I mean, can we offer an incentive for people...
SPEAKER_04: If your water heater is more than X number of years old, can the rebates or whatever
SPEAKER_04: incentives we have, will it apply to that?
SPEAKER_04: They're absolutely available.
SPEAKER_02: It's just more people don't choose to replace their water heater until it breaks.
SPEAKER_02: So when I say the 90%, it's people are choosing to wait until they break.
SPEAKER_02: 90% of people are choosing to wait.
SPEAKER_02: Anyone can take advantage of the water heater incentive.
SPEAKER_02: I think some people did actually proactively change out their water heaters for heat pump
SPEAKER_02: water heaters when the stacking of incentives...
SPEAKER_02: There was one, I think one contractor that was advertising, like, you can change out
SPEAKER_02: to heat pump water heater for $99.
SPEAKER_02: I don't know if you remember that, but that was definitely encouragement for a lot of
SPEAKER_02: people to say, like, hey, between the incentives at smud and stacking of incentives, you can
SPEAKER_02: get a really good deal to change out your water heater.
SPEAKER_02: So even if it's not broken, now is a great time to do it.
SPEAKER_02: So there is the possibility, but people tend to wait.
SPEAKER_04: Mine's about 22 years old.
SPEAKER_04: Well, might be time.
SPEAKER_02: Might be a good opportunity.
SPEAKER_04: Thank you.
SPEAKER_06: I just want to say that my spouse and I had a fight because the hot water heater, 30 years
SPEAKER_06: old.
SPEAKER_06: Oh, wow.
SPEAKER_06: It's broken?
SPEAKER_06: Why are we replacing it?
SPEAKER_06: It's replaced.
SPEAKER_06: So you obviously have all your personal experiences that contribute to the market research of
SPEAKER_02: how we think about the market potential.
SPEAKER_02: There's lots of ways to get into hot water with that kind of argument.
SPEAKER_02: I like your pun.
SPEAKER_02: That was a good one.
SPEAKER_02: Very good.
SPEAKER_02: Okay.
Unknown: Next slide.
Unknown: So this is the one that I wanted to talk about.
SPEAKER_02: Okay.
SPEAKER_02: Next slide.
SPEAKER_02: So this is the fun part where we get to feature some of the really cool projects that have
SPEAKER_02: been going on under these different portfolios.
SPEAKER_02: So we'll start with the one on the left.
SPEAKER_02: We've got Director Fishman celebrating the ribbon cutting for Aggie Square.
SPEAKER_02: So our integrated design solutions team actually started working with the customer back in
SPEAKER_02: 2021 to plan out these projects.
SPEAKER_02: And we actually have two buildings where both are on their own separate systems that
SPEAKER_02: are notable.
SPEAKER_02: So we've got the lifelong learning tower, the LLL, which is a large multi-story all-electric
SPEAKER_02: office building.
SPEAKER_02: And actually it's a really significant one.
SPEAKER_02: It's one project alone represents approximately 807 all-electric equivalent homes.
SPEAKER_02: So it's a pretty substantial contribution.
SPEAKER_02: This project actually was recognized for the Sacramento Business Journal as their real
SPEAKER_02: estate project of the year for 2025.
SPEAKER_02: The other project is also very, very notable.
SPEAKER_02: And the engineer on my team loves to talk about all the cool technology.
SPEAKER_02: So I got a couple of tidbits.
SPEAKER_02: So the Life Sciences Technology and Engineering East Building, LSTE-E, is actually the largest
SPEAKER_02: all-electric lab in our territory.
SPEAKER_02: It's got three large central heat pump water heaters that are actually used to generate
SPEAKER_02: domestic hot water really efficiently for the lab building.
SPEAKER_02: And what this project did is it actually implemented some of the largest air-to-water
SPEAKER_02: central heat pump water heaters serving a lab environment.
SPEAKER_02: So this project was actually recognized by the Advanced Water Heating Initiative from
SPEAKER_02: its innovation standpoint.
SPEAKER_02: On the right-hand side, we've got the Sacramento Food Bank.
SPEAKER_02: They actually took advantage of SMUD's custom retrofit program to install large, high-efficient
SPEAKER_02: walk-in cooler and freezer.
SPEAKER_02: And the reason why I featured this is because this is an example where we stack the incentives,
SPEAKER_02: right?
SPEAKER_02: It has program incentives for market rate for custom retrofit.
SPEAKER_02: We actually stack this on top of SHINE grant dollars through our Sustainable Communities
SPEAKER_02: program to support our community partners in really being able to go electric.
SPEAKER_02: And on the bottom right, we have Powell's Landing.
SPEAKER_02: So this was actually a motel-to-multi-family conversion.
SPEAKER_02: For 70 units, it provides permanent housing as well as wraparound essential services for
SPEAKER_02: people expressing homelessness.
SPEAKER_02: The site was actually a HOPE cooperative project and was supported by the state's Home Key
SPEAKER_02: Program as well as the city of Sacramento in addition to SMUD's multi-family program.
SPEAKER_02: So SMUD's multi-family program provided over $230,000 for the project's central heat pump
SPEAKER_02: water heater.
SPEAKER_02: And we also installed induction cooktops in each of the units within this facility.
SPEAKER_02: So very, very cool project.
Unknown: Okay.
SPEAKER_02: Next slide.
Unknown: Okay.
SPEAKER_02: The second portfolio is transportation electrification.
SPEAKER_02: So just like building electrification, transportation electrification supports our customers and
SPEAKER_02: our region by providing, again, both that carbon reduction, carbon emissions reduction
SPEAKER_02: as well as those energy savings for our customers while we're actually providing SMUD with beneficial
SPEAKER_02: load growth and revenue.
SPEAKER_02: In fact, there's been a lot of press about how data centers are going to be this huge
SPEAKER_02: new load for utilities.
SPEAKER_02: And I was just at EPRI last week.
SPEAKER_02: And they've actually showed this chart a couple of times.
SPEAKER_02: But they actually show that in the long run, electric vehicle load will supersede even
SPEAKER_02: data center loads in terms of how utilities need to think about growing load in their
SPEAKER_02: service territories.
SPEAKER_02: So transportation is the number one source of carbon emissions in California.
SPEAKER_02: So that switch to electric provides significant carbon savings.
SPEAKER_02: So in 2024, EVs in our service territory reduced emissions by 129,000 metric tons of carbon
SPEAKER_02: dioxide equivalent.
SPEAKER_02: And in 2025, we actually expect to reduce by a total of 324,000 metric tons, which is
SPEAKER_02: actually more than doubling the carbon emissions reduction from 2024 to 2025.
SPEAKER_02: SMUD EV owners in SMUD's territory pocketed a little bit over or almost $96 million in
SPEAKER_02: gas savings annually.
SPEAKER_02: So if you divide that by the number of customers who have EVs in our service territory, that's
SPEAKER_02: the equivalent of $1,452 per EV driver on an annual basis that's saving by switching
SPEAKER_02: from gas to electric.
SPEAKER_02: There have been some studies that have published that additional savings of up to $500 per
SPEAKER_02: year in service and maintenance of EVs because they have some reduced service and maintenance.
SPEAKER_02: I will counter and acknowledge that some EVs carry higher insurance premiums because when
SPEAKER_02: you do have to fix it, they cost more.
SPEAKER_02: So there is a bit of a caveat there.
SPEAKER_02: But definitely an opportunity for, again, significant carbon reduction while also providing
SPEAKER_02: energy bill savings to our customers.
SPEAKER_02: So next slide, please.
SPEAKER_02: So in this, on both charts, you see that we're actually exceeding our goal for light duty
SPEAKER_02: electric vehicles this year.
SPEAKER_02: And this is actually different than our presentation, the charts for building electrification, because
SPEAKER_02: we're not the only stakeholder that really influences EV adoption.
SPEAKER_02: And so we do so more in that building electrification space.
SPEAKER_02: You'll see the same in load flexibility as well.
SPEAKER_02: But that's why we kept the trajectory with regards to our zero carbon plan goals as well
SPEAKER_02: as our annual plan goals, even though we ended the year much higher than where we had our
SPEAKER_02: ZCP goals.
SPEAKER_02: So this chart actually shows data as of July, year to date.
SPEAKER_02: That's kind of consistent across the presentation.
SPEAKER_02: But our latest numbers that I pulled from August is that we're actually at 70,878 as
SPEAKER_02: of the end of August.
SPEAKER_02: So we've actually already exceeded our 70,000 light duty EV goal for 2025.
SPEAKER_02: So we're definitely watching very closely, as you know, from the federal policy changes
SPEAKER_02: and tax credit changes.
SPEAKER_02: The EV tax credit, the federal clean vehicle credit and the used EV credit expire at the
SPEAKER_02: end of this month.
SPEAKER_02: So September 30th, 2025.
SPEAKER_02: So I've been telling everybody that one of my staff found a lease for a Hyundai IONIQ
SPEAKER_02: for $80 a month.
SPEAKER_02: So there's definitely some deals to be had.
SPEAKER_02: But we will be watching very closely to see what the implications are, what the impacts
SPEAKER_02: are of losing out on that federal tax credit in terms of EV adoption.
SPEAKER_02: We do think that EV adoption, especially in the light duty space in California, is pretty
SPEAKER_02: robust.
SPEAKER_02: And so, but really, with all the federal policy changes, definitely for sure that medium and
SPEAKER_02: heavy duty electric vehicle electrification is likely going to be slowed.
SPEAKER_02: And we do have a board EV strategy panel that's scheduled for the beginning of November.
SPEAKER_02: So we'll be able to give you an early indication of kind of what we're seeing in the market
SPEAKER_02: when we come back to you in November.
Unknown: It'll be really early.
SPEAKER_02: It'll probably be very, very small, but yeah, very early.
SPEAKER_02: Okay, next slide.
SPEAKER_02: So you've already heard me say in many...
SPEAKER_02: While we do continue to support EV adoption, our focus really is about growing EV charging
SPEAKER_02: availability to support the EV growth, both from an available access standpoint, as well
SPEAKER_02: as just in general to support EV growth, and also managing the grid investments needed
SPEAKER_02: to support the EV load growth.
SPEAKER_02: So it's been important for us to focus and allocate funding in key priority areas.
SPEAKER_02: You may also know that the low carbon fuel standard credit market has been pretty depressed
SPEAKER_02: over the last several years.
SPEAKER_02: And so as we have run our programs and budgets relative to the value of that LCFS, it's been
SPEAKER_02: more and more difficult.
SPEAKER_02: And actually, in this year, we've always traditionally underspent, and so we had some money to roll
SPEAKER_02: over.
SPEAKER_02: But this year, we have actually spent all our money and spent our rollover.
SPEAKER_02: So when the credit value is at $48, you can understand why we are where we are.
SPEAKER_02: So we've been really focused as we think about where we're investing our money to support
SPEAKER_02: EVs, because it is important for us, but really wanting to make sure we're funneling our dollars
SPEAKER_02: in the most highest priority places.
SPEAKER_02: So while we do provide incentives for chargers still, we did drop the charger rebate this
SPEAKER_02: year from $500 to $100.
SPEAKER_02: We did maintain the circuit installation rebate at $500 to encourage that thoughtful
SPEAKER_02: installation of EV charging.
SPEAKER_02: We also reduced our commercial EV charger incentives this year, given we got a huge
SPEAKER_02: flurry of activity that actually ended up, we announced that we were reducing our incentives
SPEAKER_02: and we filled our pipeline through part of next year.
SPEAKER_02: So even with the reduced incentives, we're still seeing, we're still forecasted to significantly
SPEAKER_02: exceed our goals across all of our segments from an EV charger adoption standpoint, including
SPEAKER_02: our equity segment with income qualified customers.
SPEAKER_02: So in addition to our incentive programs, we're definitely making good progress with
SPEAKER_02: our CEC funded grants to install public EV chargers and strategic locations to support
SPEAKER_02: multifamily communities, transportation network providers, as well as disadvantaged low income
SPEAKER_02: and affordable housing communities.
SPEAKER_02: So our Reach 1 program, and I think James Frazier, when he comes and talks for SD10,
SPEAKER_02: will probably give more details on this, but you know, recall Reach 1 is where SMUD and
SPEAKER_02: mutual housing is going to deploy more than a hundred level two EV chargers, charging
SPEAKER_02: stations across multiple affordable housing communities, as well as pair with onsite,
SPEAKER_02: no cost car share, as well as specialized education.
SPEAKER_02: Reach 2, where SMUD is partnering with the Sacramento Metropolitan Air Quality Management
SPEAKER_02: District, Uber, and dozens of Sacramento area property owners and managers to deploy about
SPEAKER_02: 200 to 300 chargers at about 20 multifamily residential communities across Sacramento
SPEAKER_02: where 92% of them are located within disadvantaged low income or affordable housing communities.
SPEAKER_02: With that Reach 2, we're also going to be launching a SMUD EV app that will feature
SPEAKER_02: an integrated e-roaming platform, as well as offer the ability for us to offer variable
SPEAKER_02: rates for charging through our member charging networks, and that way we're able to encourage
SPEAKER_02: or provide lower cost public charging for low income customers, as well as transportation
SPEAKER_02: network drivers.
SPEAKER_02: We also have the FAST grant, which is putting in DC FAST chargers at the Sacramento Airport,
SPEAKER_02: Sacramento Valley Station, as well as CSUS to support EV charging infrastructure for
SPEAKER_02: those high mileage, on demand transportation services, car sharing, as well as car rental
SPEAKER_02: agencies.
SPEAKER_02: And all of these grant funded chargers, whether SMUD owns them or not, are planned to be co-branded
SPEAKER_02: as SMUD, because I know that question has come up before.
SPEAKER_02: We do continue to see robust growth in a residential EV rate participation, which definitely helps
SPEAKER_02: us mitigate charging on peak.
SPEAKER_02: And then I do want to talk to this e-fuel services number, just in case you're looking
SPEAKER_02: at it and saying, hey, why are the numbers lower than last year for the advisor reports
SPEAKER_02: and substantially lower even than the goal?
SPEAKER_02: So when we launched our e-fuel program, we had advisory services.
SPEAKER_02: We're actually using a third party consultant that's basically working with our customers
SPEAKER_02: in helping them as they consider fleet electrification, what are considerations relative to electrification
SPEAKER_02: and charging needs at their facility.
SPEAKER_02: That is very, very important to help grease the skids with regards to commercial customers
SPEAKER_02: that are thinking about electrifying their fleet.
SPEAKER_02: We also realized, as you can see in 2024, we did a lot of advisory reports and got no
SPEAKER_02: projects.
SPEAKER_02: And so from a cost standpoint was very, very expensive.
SPEAKER_02: And so again, from a focused how are we spending our dollars and stretching it, we actually
SPEAKER_02: moved to an online tool for our commercial customers that has actually not only helped
SPEAKER_02: support our commercial customers, but actually also provides tools for our strategic account
SPEAKER_02: advisors internally so they can work with their commercial accounts to be able to better
SPEAKER_02: advise them as they think about and consider transportation electrification.
SPEAKER_02: So those 10 advisor reports that you see, those are still sort of the legacy paying
SPEAKER_02: the third party consultant to do the analysis.
SPEAKER_02: And that's why the numbers are smaller.
SPEAKER_02: It doesn't count the numbers of online audits that the customers and the SAAs are doing
SPEAKER_02: themselves using the online tool.
SPEAKER_02: So yes.
SPEAKER_02: Poor stuff.
Unknown: I work in this area.
SPEAKER_08: So like the state of Washington, so California has our Cal Fleet Advisor product that's paid
SPEAKER_08: for through the HVIP funding.
SPEAKER_08: And it's basically advisory services, just like what we do through Black and Beach, which
SPEAKER_08: is our e-fuel.
SPEAKER_08: But it's an interesting question.
SPEAKER_08: I learned that the state of Washington has a similar advisory program, but they require
SPEAKER_08: actual signed contracts for you to take steps.
SPEAKER_08: And so I just throw that out there.
SPEAKER_08: Maybe we have sort of some gateways, right?
SPEAKER_08: If we're going to do some real actual engineering analysis, for example, and site plan kind
SPEAKER_08: of work that you have some more written contracting, some written guarantees that they're going
SPEAKER_08: to move forward.
SPEAKER_08: A little bit more teeth.
SPEAKER_08: Yeah.
SPEAKER_08: So I definitely think there's room for us to sort of think about what that might look
SPEAKER_08: like.
SPEAKER_08: I mean, the consultants, the professional engineers, they're costing us good money to
SPEAKER_08: have them do this work.
SPEAKER_08: And just because the plan isn't being implemented today doesn't mean that that plan won't get
SPEAKER_08: dusted off in a few years.
SPEAKER_08: That's true.
SPEAKER_08: And used to.
SPEAKER_08: But it's definitely an area to think about.
SPEAKER_08: We don't want to waste money.
SPEAKER_08: That's for sure.
SPEAKER_08: Right.
SPEAKER_08: All right.
SPEAKER_02: Anyway, my two cents.
SPEAKER_02: Yep.
SPEAKER_02: No, thank you.
SPEAKER_02: I appreciate the thoughts.
SPEAKER_02: Definitely we'll look into that.
SPEAKER_02: In continuation of our analysis about how to optimize grid investments to support our
SPEAKER_02: load growth from electrification, the strategy team's actually in the middle of integrated
SPEAKER_02: distribution resource planning, so IDRP.
SPEAKER_02: We actually last conducted this back in 2020, so it was actually pre-2030 zero carbon plan.
SPEAKER_02: And so it was a good time to update.
SPEAKER_02: We also, as part of the IDRP, have been doing a more granular analysis on EB loads, particularly
SPEAKER_02: for medium and heavy duty, which was done a little bit more of a higher level when we
SPEAKER_02: did this in 2020.
SPEAKER_02: And also looking at where load flexibility can help alleviate some of the grid's constraints.
SPEAKER_02: And so we'll also be using the IDRP analysis to help feed into the integrated resources
SPEAKER_02: planning work that Brian Swan's team will be leading in 2026.
SPEAKER_02: And so looking ahead, I did mention as part of Reach2, but just in general, we'll be launching
SPEAKER_02: the customer EV app early next year, aside our public charging network program that will
SPEAKER_02: provide pricing discounts for low income, as well as transportation network drivers
SPEAKER_02: in conjunction with the Reach2 grant.
SPEAKER_02: We'll also be developing program options for commercial EV fleet and workplace charging.
SPEAKER_02: And then finally, just as an FYI, you may recall that the statewide part of the carve-out
SPEAKER_02: of the low carbon fuel standard credit program is putting funds into the Clean Fuel Rewards
SPEAKER_02: program.
SPEAKER_02: You may recall that actually the Clean Fuel Rewards program used to be cached on the hood
SPEAKER_02: for light duty, and that is now switched to medium and heavy duty.
SPEAKER_02: So the CFR program is in the process of designing that new program as it relates to medium and
SPEAKER_02: heavy duty.
Unknown: Yes.
Unknown: A question.
SPEAKER_06: I just want to make sure that I'm understanding the chart right.
SPEAKER_06: So like if you look at the level two chargers, it says 2024, 611.
SPEAKER_06: So at the end of 2024, we had 611 in place.
SPEAKER_06: And that 500 is a new goal, right?
SPEAKER_06: Right.
SPEAKER_06: And so we are a little bit over half of it.
SPEAKER_06: But what you're saying is you hope to get to 650, and then we would have 1260.
SPEAKER_02: We would have 650 by the end of 2025.
SPEAKER_02: Right.
SPEAKER_06: But then if you added it...
SPEAKER_06: Oh, it's incremental.
SPEAKER_06: When you say we'll have 650 at the end of 2025, it's confusing to see the 611.
SPEAKER_06: Oh, versus cumulative or something like that.
SPEAKER_02: You'd rather see cumulative.
SPEAKER_02: So I am understanding it.
SPEAKER_06: Okay.
Unknown: Got it.
SPEAKER_02: Sure.
SPEAKER_02: Other questions?
Unknown: Okay.
SPEAKER_02: Next slide.
SPEAKER_02: So I mentioned at the beginning that we often have projects that span multiple projects.
SPEAKER_02: And this is a picture of Director Sanborn.
SPEAKER_02: I know she's not here tonight.
SPEAKER_02: But it's actually a picture of Director Sanborn providing the incentive check for CORE, which
SPEAKER_02: is the Consumnes Community Services District's new 54,620 square feet, two-story, all-electric
SPEAKER_02: recreation center.
SPEAKER_02: And I was looking actually at the staff's incentive document, which I have to sign off
SPEAKER_02: on each and every one of them, and it was actually modeled to have a 79% reduction in
SPEAKER_02: energy use as if they...
SPEAKER_02: I mean, this is new construction versus what they would have had if they would have put
SPEAKER_02: in gas.
SPEAKER_02: So just really, really remarkable with regards to the amount of reduction in energy use.
SPEAKER_02: So by utilizing electric heat pumps instead of gas.
SPEAKER_02: The other cool thing, which my staff told me about, is they implemented a central heat
SPEAKER_02: pump water heater into the general building exhaust where they actually implemented an
SPEAKER_02: outdoor unit into the indoors, and they placed it in a way that actually captures all the
SPEAKER_02: general building exhaust.
SPEAKER_02: It recovers the valuable building heat before it sends it outdoors, and that will actually
SPEAKER_02: help them reduce their energy use in the wintertime as they use that heat pump from a heating
SPEAKER_02: standpoint.
SPEAKER_02: So definitely looking for ways to be able to maximize how these technologies work to
SPEAKER_02: be able to minimize the amount of energy use.
SPEAKER_02: The other thing about this project that was great is that when they submitted the project,
SPEAKER_02: it was at 0% of the schematic design completed, so they came to SMUD early.
SPEAKER_02: And by coming to SMUD early, it really provided the opportunity for the program staff to be
SPEAKER_02: able to give the project some ideas and really consider some of these innovative features
SPEAKER_02: that has really been wonderful to enable them to have access to these sustainability options
SPEAKER_02: while helping them save on their energy bill.
SPEAKER_02: And then I found out just today from one of my staff was that they are actually also in
SPEAKER_02: the process, even though I haven't talked about load flexibility yet, to sign up for
SPEAKER_02: a PowerDirect program, so our commercial load flexibility program on top of that.
SPEAKER_02: So just a great example of a customer that's really participating in multiple facets, oh,
SPEAKER_02: sorry, and the whole reason why is because this is transportation electrification, is
SPEAKER_02: they actually also installed four Level 2 EV chargers under SMUD's commercial EV program.
SPEAKER_02: So really looking at all of these different things, and that's providing access to not
SPEAKER_02: only the people that come to this facility, but really providing community access to EV
Unknown: charging.
SPEAKER_02: So the top photo on the right highlights our commercial EV program again, and this is actually
SPEAKER_02: the Sacramento Food Bank.
SPEAKER_02: The reason why we featured this is they put in 10 new Level 2 electric vehicle chargers,
SPEAKER_02: but really they're using this not only for their fleets, so they're doing fleet electrification,
SPEAKER_02: but also for the public that come and visit the food bank.
SPEAKER_02: So it's really serving that dual purpose between public charging for the community,
SPEAKER_02: as well as supporting their fleet charging needs.
SPEAKER_02: And then the bottom photo on the right is actually a Bridgway Towers.
SPEAKER_02: It's a 15-story, 144-unit, multifamily site in downtown Sacramento.
SPEAKER_02: It actually offers residents convenient parking in the two-story parking garage that's actually
SPEAKER_02: next to the building.
SPEAKER_02: And because of the growing demand for at-home electric vehicle charging, which is often
SPEAKER_02: a constraint in multifamily communities, Bridgway actually partnered with SMUD as well
SPEAKER_02: as Phil Hopped Electric.
SPEAKER_02: They actually installed 47 Level 1 smart chargers.
SPEAKER_02: They're made by Orange Charger, and they are able to replenish about 40 miles of driving
SPEAKER_02: range per night.
SPEAKER_02: But really it was being able to provide this many chargers.
SPEAKER_02: And you think about it, because of the number of them, many of the EV drivers can actually
SPEAKER_02: have a dedicated charger instead of having to go and move their vehicle or switch off
SPEAKER_02: or fight for an EV charger.
SPEAKER_02: So really being able to utilize one for their own household.
SPEAKER_02: And so this was provided through a combination of incentives from SMUD, Sacramento Metro
SPEAKER_02: Air Quality Management District, and they were able to pave that way for their community
SPEAKER_02: to really transition into that zero emissions future for their building.
SPEAKER_06: Next slide.
SPEAKER_09: So...
SPEAKER_04: Real quick, Rachel.
SPEAKER_04: Just this afternoon, the Bridgway Towers project was recognized by the Business Environmental
SPEAKER_04: Resource Center as one of their awardees, and it's a really cool project.
SPEAKER_04: People that were getting more and more EVs and didn't know how to arrange for charging
SPEAKER_04: can be very expensive to install actual hard charging with the actual plugs.
SPEAKER_04: And they said, look, these smart plugs are just as good as people utilize the cord that
SPEAKER_04: comes with their own vehicle, and it just saves them a ton of money and the residents
SPEAKER_04: are all happy, and it's a very cool way to go.
SPEAKER_02: That's great.
SPEAKER_02: That's great to know.
SPEAKER_02: Yeah, it's a fantastic project.
Unknown: It's definitely like that education, right?
SPEAKER_08: We have conversations with people, right, that you can plug it into an outlet and get
SPEAKER_08: 40 or 50 miles at night.
SPEAKER_08: Depending on the amp, it's 15 or 20 amp amperage, right?
SPEAKER_08: Those four amps can make a significant difference too, but people don't realize that.
SPEAKER_08: Unless they're driving more than 50 miles a day, right?
SPEAKER_08: Just the wall, a regular wall outlet works.
SPEAKER_08: Something like this is great where everybody has access to an outlet.
SPEAKER_02: Yeah, that's that education and exposure, right, that most people wouldn't think that
SPEAKER_02: they could just get by with a level one charger.
SPEAKER_02: And usually with a facility, you have a handful of higher power chargers for people who need
SPEAKER_08: to top off, something like that.
SPEAKER_08: So glad to see that moving forward.
Unknown: Okay.
SPEAKER_02: Next slide, which is distributor energy resources, also known as load flexibility.
SPEAKER_02: So these are those programs that actually help shift and manage loads, which actually
SPEAKER_02: helps SMUD maximize the use of our renewable energy generation.
SPEAKER_02: It creates capacity where and when needed to support the bulk system or the localized
SPEAKER_02: grid.
SPEAKER_02: And in the future, it could actually help us take advantage of market participation
SPEAKER_02: to optimize resources.
SPEAKER_02: So you may recall in the zero carbon plan that achieving 364 megawatts was kind of basically
SPEAKER_02: the base to support SMUD's zero carbon efforts in order from new technologies and business
SPEAKER_02: models to help us achieve our zero carbon plan.
SPEAKER_02: So this is really how our customers manage their energy use and really use the investments
SPEAKER_02: that they've made in devices and help us to be able to maximize our utilization of those
SPEAKER_02: renewable energy resources, as well as potentially provide an alternative to investment in utility
SPEAKER_02: scale resources, if that's cost competitive as a comparison.
SPEAKER_02: Next slide.
SPEAKER_02: So similar to building electrification, we are expecting to exceed our zero carbon plan
SPEAKER_02: goal for 2025.
SPEAKER_02: We are falling a bit short of our annual plan goal.
SPEAKER_02: And this is a very similar situation to BE where you can see that we're actually above
SPEAKER_02: goal for 2025.
SPEAKER_02: And what we did is because we were trending above goal, we set ourselves an incremental
SPEAKER_02: goal and then we actually even bumped it up a little bit on top of that because we were
SPEAKER_02: hoping that as we increased our storage incentives, our residential storage incentives for our
SPEAKER_02: virtual power plant, that we'd actually get a lot of uptake.
SPEAKER_02: Unfortunately, Tesla actually had some supply chain issues, so it didn't actually have
SPEAKER_02: as much battery availability until about Q2 of 2025.
SPEAKER_02: Obviously there's been a lot of economic uncertainty and also some political considerations as
SPEAKER_02: we think about battery storage adoption.
SPEAKER_02: And so we, like I said, are still on track to meet our zero carbon goal trajectory for
SPEAKER_02: load flexibility, but just are not exactly hitting that incremental goal.
SPEAKER_02: But we had really set it as a stretch goal because we recognized that there was that
SPEAKER_02: opportunity as we were going to expand our residential solar and storage VPP.
SPEAKER_02: Next slide.
SPEAKER_02: So across our load flexibility portfolio, we have a lot of programs.
SPEAKER_02: You can see that here.
SPEAKER_02: We are making a lot of great progress with regards to our thermostat program.
SPEAKER_02: We're forecasting to be up at about 30 megawatts by the end of the year through the participation
SPEAKER_02: of 30,000 thermostats.
SPEAKER_02: We've also achieved almost five megawatts of installed capacity through our My Energy
SPEAKER_02: Optimizer Partner Plus program with Tesla, which is who we started out with.
SPEAKER_02: But as mentioned, we did experience some headwinds as we faced some challenges relative to economic
SPEAKER_02: conditions as well as the supply chain issues.
SPEAKER_02: We did celebrate that we were able to expand our battery storage incentives to five additional
SPEAKER_02: battery storage OEMs, which was really about providing our customers more choice as they
SPEAKER_02: consider installing battery storage.
SPEAKER_02: But because of the slower uptake, we expect to keep the elevated battery storage incentives
SPEAKER_02: available through the end of the year.
SPEAKER_02: So we thought we might possibly run out, but we do have capacity to be able to support
SPEAKER_02: it to the end of the year.
SPEAKER_02: The other thing we've been doing, like I said, in sort of a common theme is really being
SPEAKER_02: focused as we look at our programs within our portfolio.
SPEAKER_02: We'll see that our P Conserve program, which is our next generation air conditioning load
SPEAKER_02: management program that leverages those two-way switches, the participation has stayed flat,
SPEAKER_02: and that's actually been deliberate.
SPEAKER_02: We did receive measurement and verification results and did see high customer satisfaction,
SPEAKER_02: but also saw that from a cost competitiveness standpoint for the resource, it really wasn't
SPEAKER_02: there.
SPEAKER_02: And so as a result of that learning, we actually made the decision to stop the program for new
SPEAKER_02: enrollments.
SPEAKER_02: We are in the process of figuring out what do we want to do with our existing customers
SPEAKER_02: that already have the devices and we've already made that investment, and we'll be figuring
SPEAKER_02: that out soon.
SPEAKER_02: What does that actually mean?
SPEAKER_08: Does that mean that we weren't seeing the actual results when we went to have an event
SPEAKER_08: where we're not seeing energy reduction savings, for example?
SPEAKER_02: It's a combination of the cost, right?
SPEAKER_02: So we have to invest in the device.
SPEAKER_02: We have to invest in the installation of the device.
SPEAKER_02: We have what are the incentives that we're sending to get when we call an event, and
SPEAKER_02: that total cost that we ended up investing in order to be able to get that load flexibility
SPEAKER_02: capacity did not end up being as cost competitive as we thought it would be, and then as we
SPEAKER_02: look at that resource relative to other resources, it wasn't as competitive either.
SPEAKER_02: So I think that's where we do look at the portfolio.
SPEAKER_02: We do still want how do we think about customer segmentation and things like that, but we
SPEAKER_02: are seeing a lot more smart thermostat penetration, and so therefore that was one area of, hey,
SPEAKER_02: how are certain customers who don't have access to Wi-Fi able to participate, but we're seeing
SPEAKER_02: a lot more smart thermostat penetration.
SPEAKER_02: So if we can accommodate that customer segment in different ways, then that's how we think
SPEAKER_02: through those kinds of decisions.
SPEAKER_08: I know at one point, and this was at least a couple years ago, where they were the big
SPEAKER_08: office building downtown, and it was a hot day, and they were going to have the demand
SPEAKER_08: response event, and it makes the building warm.
SPEAKER_08: People would argue it's uncomfortably warm, so they told all the staff to stay home, right?
SPEAKER_08: So then we have like three or four thousand, what's going on, potentially three or four
SPEAKER_08: thousand staff in that building, right, who are now not coming and being in one central
SPEAKER_08: place.
SPEAKER_08: So it definitely, I could understand how the M&V reports could find results, right, when
SPEAKER_08: they start digging in, but it was not expected.
SPEAKER_08: Yeah, and I think that's really key, and why M&V is so important is to, you know, we go
SPEAKER_02: in with business models that we model, and we have hypotheses of, but then how do we
SPEAKER_02: actually measure to see what realizable load shift savings, at what cost, is really what
SPEAKER_02: guides us on how we make decision making relative to our portfolio, and continually culling
SPEAKER_02: our portfolio as needed.
SPEAKER_02: Looking ahead, one of the things is that we've launched some efforts internally to define
SPEAKER_02: some operational parameters and characteristics needed for DERs to participate in markets.
SPEAKER_02: We're not there yet, but actually one of our staff is participating in the KISO's demand
SPEAKER_02: and distribution energy market integration initiative working group.
SPEAKER_02: I forget what the acronym, how it's pronounced, but it's a really, really long acronym, and
SPEAKER_02: so just recognizing we're always looking ahead, right, as we think about DER possibilities
SPEAKER_02: to participate in markets, what are the parameters, what do the operational teams need in order
SPEAKER_02: to be able to deliver upon that, and having that conversation internally now to be able
SPEAKER_02: to scope that out so that we're really prepared when the time comes and that availability
SPEAKER_02: is there.
SPEAKER_02: The other thing we're doing as we look ahead is that we've been running our load flexibility
SPEAKER_02: programs pretty much a single program with different vendors.
SPEAKER_02: We've got one vendor that runs our thermostat program.
SPEAKER_02: We've got one vendor that is our storage program, and we recognize there's an opportunity,
SPEAKER_02: especially as customers participate with multiple technologies, to be able to consolidate that
SPEAKER_02: to a one vendor approach.
SPEAKER_02: So as we go out for a solicitation soon, we'll be looking for a one vendor approach for multiple
SPEAKER_02: DER management.
SPEAKER_02: The other thing we're doing is we're working to transition our residential managed EV charging
SPEAKER_02: pilot, which has been in pilot for a couple of years.
SPEAKER_02: We've been working with OB-GIP as well as OptiWatts, but we've actually planning on
SPEAKER_02: moving that to an operational program.
SPEAKER_02: We've learned what we've learned from the pilots, and we believe we're at the stage
SPEAKER_02: now that we can design our operational program.
SPEAKER_02: We also have a high penetration of EVs, and so it's really a good time to make sure that
SPEAKER_02: customers are used to thinking about managed EV charging when they have an EV.
SPEAKER_02: Just as an FYI of why you see the year-to-date and the forecast is much lower than the goal
SPEAKER_02: for 2025, it's just that we've extended our procurement process.
SPEAKER_02: So it's pushed out our launch date that new enrollments of 350 was supposed to be on the
SPEAKER_02: new system, but we're planning on carrying over our customers that exist in our pilot
SPEAKER_02: into when we operationalize the managed EV charging pilot.
SPEAKER_02: Also coming ahead is we are working on a commercial VPP pilot that will open up battery storage
SPEAKER_02: incentives to targeted commercial customers where the location of that customer-cited
SPEAKER_02: battery can help potentially mitigate some grid investments that we'll be making in the
SPEAKER_02: future so that we have that value proposition or able to test that out.
SPEAKER_02: And then, like I said, as we think about sort of watching our portfolio and seeing what's
SPEAKER_02: working, what's not working, what's cost-effective, we're going to continue to scale our programs
SPEAKER_02: as we see fit relative to the costs and the outcomes that we're driving.
SPEAKER_02: And you see that with our decisions about not encouraging more participation of Power
SPEAKER_02: Direct, but also that we're doing some evolution with our... sorry, with P-conserve, and that
SPEAKER_02: we're also evolving our commercial Power Direct program as we look at what are those time
SPEAKER_02: periods in which there's the highest value for the load flexibility and how that's shifting
SPEAKER_02: as we think about our resource mix.
SPEAKER_02: Next slide.
SPEAKER_02: So some pictures about load flexibility.
SPEAKER_02: So I'm actually going to start to the right this time, and the reason why is those two
SPEAKER_02: Tesla Powerwalls are Ed Hamzawi's Tesla Powerwalls.
SPEAKER_02: And so I had to feature this in this board presentation.
SPEAKER_02: So Ed was... he started participating.
SPEAKER_02: Once we bumped up the incentives, he got two Tesla Powerwalls.
SPEAKER_02: He also fell into the supply chain issues of not getting his battery right when he started
SPEAKER_02: ordering it, so he actually had to wait.
SPEAKER_02: I say this a little tongue in cheek is that the team has enjoyed the feedback that Ed
SPEAKER_02: has provided as a customer, so it's been good for him to see that experience and for our
SPEAKER_02: team to see him in that experience as well.
SPEAKER_02: But yeah, it's just a great picture and a little bit of homage to Ed.
Unknown: Remember, he got a new house relatively soon around when he... yeah, it looks pretty empty,
SPEAKER_02: doesn't it?
Unknown: Yeah, he probably has his way to the...
SPEAKER_02: I'm just going to have to clean up the mike garage.
SPEAKER_02: Rachel, I want to ask...
SPEAKER_08: I was just going to hang that in front of me.
SPEAKER_08: The $10,000, right, we went up to big time, and you said that we're going to keep it that...
SPEAKER_08: the intention right now is to keep it this way through the end of the year.
SPEAKER_02: To the end of the year.
SPEAKER_08: What is the... are we going to reevaluate that level and look at the numbers after that?
SPEAKER_08: Yes.
SPEAKER_08: And what's that sort of timing with that piece of connection?
SPEAKER_08: Well, I mean, we had... when we made the decision to increase the battery storage incentive
SPEAKER_02: to up to $5,000 each, up to $10,000 for two, we had a number, I think, of 1,500 installations
SPEAKER_02: that we were targeting.
SPEAKER_02: So we're not there yet.
SPEAKER_02: I think the other thing is continually to look at, like, what's the market pricing of battery
SPEAKER_02: storage?
SPEAKER_02: What's the value of the capacity that we're getting from the battery storage?
SPEAKER_02: What is the tipping point in which it enables customers to adopt battery storage?
SPEAKER_02: So those are all the typical questions we ask ourselves when we design the incentive,
SPEAKER_02: and when we evaluate when's the right time.
SPEAKER_02: And if you look at our battery storage incentive program design, all the way back to what legislation
SPEAKER_02: it was, I can't remember off the top of my head, but where we were required to install
SPEAKER_02: certain battery storage, the intent has always been to reduce the incentives, the upfront
SPEAKER_02: incentives, and really use the capacity payment as the payment mechanism to value the capacity.
SPEAKER_02: So some of that upfront incentive is really that market transformation and also helping
SPEAKER_02: support, you know, our solar and storage rate.
SPEAKER_02: But the intent is to decrease those incentives over time.
SPEAKER_02: In the middle, we actually have a picture of the installation of the OpenADR grid link
SPEAKER_02: device for a new PowerDirect customer that we enrolled this year, HP Hood.
SPEAKER_02: So they participate in PowerDirect by shutting down three 50 horsepower air compressors,
SPEAKER_02: as well as a combination of air and ammonia compressors, depending upon their production
SPEAKER_02: schedules.
SPEAKER_02: But to date, in 2025, they have, on average, overperformed expectations at 119 percent,
SPEAKER_02: and they've reduced their usage by over one megawatt at times during PowerDirect events.
SPEAKER_02: I know it was a relatively cool summer, but definitely great to see our customers participate.
SPEAKER_02: And then on the left, it's just another example of a cross-portfolio customer initiative,
SPEAKER_02: where we're actually testing out peak-focused home electricity reports, aside our traditional
SPEAKER_02: home electricity reports that are focused on energy use, to see if that provides any
SPEAKER_02: opportunities to help our customers better manage their peak usage.
Unknown: Okay, next slide.
Unknown: Okay, so this is the last portfolio, so we're in the home stretch, is our green pricing
SPEAKER_02: portfolios.
SPEAKER_02: And this really provides our customers the opportunity to utilize and support renewable
SPEAKER_02: and carbon-free energy beyond our standard electricity mix.
SPEAKER_02: Next slide.
SPEAKER_02: So in the case of our green pricing programs, this is actually the opposite of some of the
SPEAKER_02: things we've seen, is that we're actually on track to hit our annual goal on the left,
SPEAKER_02: but if you look at our zero carbon plan gigawatt hour goal on the right, we're actually forecasted
SPEAKER_02: to be below for 2025.
SPEAKER_02: The rationale before of this is when we decided to set our annual planning goals for 2025,
SPEAKER_02: we had already made the decision to remove that middle tier of the residential green
SPEAKER_02: energy options, so that was that $8 and $10 option, and it really created two options,
SPEAKER_02: which is the $3 option and the $18 option.
SPEAKER_02: And those are pretty big, it's a pretty wide range of options.
SPEAKER_02: And as such, while we have seen an increase in green energy participants in the number,
SPEAKER_02: we have seen a number of green energy participants go down to that lower dollar value, so we
SPEAKER_02: don't have as much gigawatt hours.
SPEAKER_02: The other thing is, is we have had a more mild summer, so there just have not been as
SPEAKER_02: many gigawatt hours sold.
SPEAKER_02: So just some considerations as we continue on to look at the results.
SPEAKER_02: Yes.
SPEAKER_04: Rachel, as we start succeeding more and more with our zero carbon goal, then our greater
SPEAKER_04: percentage of our energy is coming from renewable resources or at least zero carbon resources.
SPEAKER_04: There's going to be less and less incentive for people to participate in green energy, right?
SPEAKER_04: Yes.
SPEAKER_04: At what point do we sort of, I mean, it's like the state is now not giving people with
SPEAKER_04: EVs access to the HOV lanes anymore.
SPEAKER_02: Right.
SPEAKER_04: There's so many, what's the point?
SPEAKER_04: So are we getting close to that?
SPEAKER_02: So I think, you know, it's a good question, it's definitely been something on our minds,
SPEAKER_02: and I think this has been the interesting thing about having the strategy organization
SPEAKER_02: with the delivery organization, is we really need to take a step back and look at that
SPEAKER_02: overall green pricing portfolio.
SPEAKER_02: So I'll go through, you know, it's not just green energy, but multiple programs in there
SPEAKER_02: is like, what are really the key outcomes that we're trying to drive from this program?
SPEAKER_02: You know, we have had a very much a mass market participation in residential green energy,
SPEAKER_02: but is that sustainable?
SPEAKER_02: Actually our marketing, our market research team did some analysis looking, they repeated
SPEAKER_02: some market research that they did back in, I think it was 2019 and just did it recently.
SPEAKER_02: And what you see is the, like the, I don't know if it's like proclivity to adopt is lower
SPEAKER_02: at all price points.
SPEAKER_02: Now some of that might be a snapshot in time, we've got a lot of economic uncertainty and
SPEAKER_02: things like that, but some of it might be is like, hey, a large percentage of my power
SPEAKER_02: is already carbon free.
SPEAKER_02: So it's definitely an opportunity for us to look at it, take a step back from a strategy
SPEAKER_02: and planning standpoint and say, what are we really trying to accomplish with this portfolio?
SPEAKER_02: What do we want to provide for our customers?
SPEAKER_02: And it might become more niche than what it is today.
SPEAKER_02: It might not, but I think those are those things of how do we think about the programs
SPEAKER_02: that we have?
SPEAKER_02: What are, this is the continual culling of the portfolio, right?
SPEAKER_02: What are the new programs we might introduce?
SPEAKER_02: I'll mention one thing in the next slide, which is Department of General Services.
SPEAKER_02: And we've been seeing a couple of large commercial customers that have been interested in better
SPEAKER_02: understanding their load profile and how hourly renewable energy generation matches up with
SPEAKER_02: that.
SPEAKER_02: So one thing we're doing with them as a pilot, just to look at it, to see like how close does
SPEAKER_02: it match up?
SPEAKER_02: And what we're hearing, I was at EPRI last week, is a number of the hyperscalers are
SPEAKER_02: actually very interested at looking at renewable energy to support the load that they have
SPEAKER_02: eventually, right?
SPEAKER_02: They obviously need power quickly, but they also are interested because of sustainability
SPEAKER_02: goals at some point to consider that renewable energy piece.
SPEAKER_02: So those are things that we're watching that might be a new thing that we might introduce
SPEAKER_02: into the portfolio.
SPEAKER_02: Right now we're just doing that test with DGS just looking at the data, but to see how
SPEAKER_02: other commercial customers might find interest.
SPEAKER_02: But it is definitely a time to examine that and to look at that for sure.
SPEAKER_08: So Rachel, I will tread into the telling you how to do your work, which the board isn't
SPEAKER_08: supposed to do.
SPEAKER_08: But I really think we need to think about this to a behavioral psychology lens, right?
SPEAKER_08: And I was brainstorming at Light Distributed Tech.
SPEAKER_08: I said, well, okay, what if we give everybody who signs up for green energy five days per
SPEAKER_08: summer that they can get a vacation from the time of use schedule, right?
SPEAKER_08: We're just thinking about how people value things, right?
SPEAKER_08: Because it's not necessarily completely homo economicus logical how people value things,
SPEAKER_08: but I definitely think we need to think about how you gamify the green pricing program versus
SPEAKER_08: all the engineers coming up with a whole bunch of we can attach to this circuit to that circuit,
SPEAKER_08: right?
SPEAKER_08: I definitely want you guys to make sure you're expanding how you think about the projects.
SPEAKER_02: No, and that's a good call, right?
SPEAKER_02: I mean, that's where customer segmentation plays a role, which is really understanding
SPEAKER_02: what's motivating different types of customer segments.
SPEAKER_02: Some of them are very economically focused and are going to make that financial equation
SPEAKER_02: work for them.
SPEAKER_02: Some of them are passionate about sustainability, and it doesn't matter how much they're doing
SPEAKER_02: that.
SPEAKER_02: And we see that actually as you look across the different segments of participation in
SPEAKER_02: green energy or even solar shares, and I'll talk about that a little bit next, is you
SPEAKER_02: have people amongst the entire income spectrum participating in these additional cost programs.
SPEAKER_02: And that's an indication that different customer segments value different things and are looking
SPEAKER_02: for different things.
SPEAKER_02: So that's a good point.
SPEAKER_02: I'm happy to continue to brainstorm and even like saying, Hey, your solar is coming only
SPEAKER_08: from local, local power plants no more than 50 miles away or something.
SPEAKER_08: Like there's a lot of creative ways you can sell a product.
SPEAKER_08: Okay.
SPEAKER_02: Sure.
SPEAKER_02: No, you're good.
SPEAKER_02: As I said, we're slightly below goal for residential and commercial green energy programs
SPEAKER_02: in terms of numbers accounts, but we've actually increased versus 2024.
SPEAKER_02: We think that that's something to celebrate, particularly in this uncertain economic climate.
SPEAKER_02: But something definitely to celebrate in terms of numbers is that we did see a significant
SPEAKER_02: increase in our residential solar shares participation from 2024 to 2025.
SPEAKER_02: And this is very much kudos to the marketing team, the communications team, the trade show
SPEAKER_02: and events team and the program team working together with a, with a focused effort to
SPEAKER_02: really drive not only participation, but as I think Ed talked about last year, we developed
SPEAKER_02: the residential solar shares program to help support the customers that are less likely
SPEAKER_02: to be able to adopt solar.
SPEAKER_02: And so we're focused while it doesn't limit participation.
SPEAKER_02: Ideally we're hoping to see a good amount of participation in the low and moderate income
SPEAKER_02: segment.
SPEAKER_02: But what we've seen as through this concerted effort with the marketing communication and
SPEAKER_02: events team is that we've actually been very successful at that.
SPEAKER_02: So you'll see that our goal for this year was 1500 and we expect to exceed 1600 enrollments
SPEAKER_02: by the end of the year.
SPEAKER_02: We've looked at the percentages of the residential solar shares participants.
SPEAKER_02: 82% of them are in the non-EPR low and moderate income buckets and 12% are EPR and 6% are
SPEAKER_02: other.
SPEAKER_02: So that really gives you like, hey, we deliberately went to target the low and moderate income
SPEAKER_02: customers and we're getting the low and moderate income customers that are participating in
SPEAKER_02: solar shares.
SPEAKER_02: We've got our climate advocate program where customers contribute towards actually investing
SPEAKER_02: in projects.
SPEAKER_02: We're actually...
SPEAKER_02: We jump to the next slide.
SPEAKER_08: Oh, sorry.
SPEAKER_02: Am I in the next?
SPEAKER_02: Oh yes, we are on the next slide.
SPEAKER_02: Sorry about that.
SPEAKER_02: Our climate advocate program, we're actually seeking opportunities to use the funds also
SPEAKER_02: to include some projects based upon the nature-based solution.
SPEAKER_02: So the program team is working with Kathleen Aveh and the strategy team to look at project
SPEAKER_02: selection criteria as well as potential projects to fund there.
SPEAKER_02: And then as we look ahead, something that has been widely requested is to expand our
SPEAKER_02: virtual solar program.
SPEAKER_02: So we have virtual solar, which was created back in 2022.
SPEAKER_02: It was for affordable multifamily housing.
SPEAKER_02: We also had neighborhood solar shares, which was our title 24 multifamily solar option.
SPEAKER_02: But we did close neighborhood solar shares to new enrollments.
SPEAKER_02: You'll recall that was with some changes to title 24.
SPEAKER_02: And so we've created a new market rate version of virtual solar shares.
SPEAKER_02: Now we've rebranded it.
SPEAKER_02: So it's all going to be called multi-tenant solar.
SPEAKER_02: I have to remember that because I still want to call it virtual solar.
SPEAKER_02: But it will be multi-tenant solar and we'll have an affordable option and we'll have a
SPEAKER_02: market rate option.
SPEAKER_02: So we'll be launching this at the beginning of 2026.
SPEAKER_02: We're working through all the IT work right now, but it works out really well that even
SPEAKER_02: though we've closed neighborhood solar shares for new enrollments, we're still finishing
SPEAKER_02: up some projects in that space.
SPEAKER_02: And so that timing works out really well for when we believe projects will be coming to
SPEAKER_02: pass and looking for something like this to be available by the beginning of next year.
SPEAKER_02: And then on top of this, just like with virtual solar, there is the seed option, the supplier
SPEAKER_02: education economic development option that currently provides an additional 60 cents
SPEAKER_02: per watt, up to $500,000 per project.
SPEAKER_02: And we've actually awarded approximately $30,000 to date to seed qualified owners to
SPEAKER_02: date for their participation in virtual solar.
Unknown: With the question, I thought the residential solar shares program was closed.
SPEAKER_02: No, this is the residential solar shares program was closed was the one that I probably launched
SPEAKER_02: back in like 2007, which we closed when we went to TOD, I think.
SPEAKER_02: And then we re-launched a new residential solar shares program last year in response
SPEAKER_02: to interest in having an option for residential customers.
SPEAKER_02: And that's why, as I mentioned, we designed it to target low and moderate income customers,
SPEAKER_02: but didn't limit it to low and moderate income customers.
SPEAKER_02: So technically anyone can join, but have been focusing our marketing and recruitment in
SPEAKER_02: that space, knowing that that customer segment is less likely to adopt rooftop solar.
SPEAKER_06: So this program would allow me to buy into some solar shares to get solar energy.
SPEAKER_06: And it's not on my home, but it's someplace else.
SPEAKER_06: Right.
SPEAKER_06: Okay.
Unknown: Thank you.
Unknown: Yes.
SPEAKER_02: Okay.
SPEAKER_02: I've already talked about the renewable shares, which is the pilot with DGS to kind of track
SPEAKER_02: the hourly renewables.
SPEAKER_02: And then we continue to work on scoping the projects for the solar schools, community
SPEAKER_02: resiliency centers.
SPEAKER_02: We had a board panel back in February where we did an in-depth discussion on community
SPEAKER_02: solar.
SPEAKER_02: We're continuing to make progress.
SPEAKER_02: These projects are very complex because we're navigating not just solar and storage, but
SPEAKER_02: considering resiliency and not just the microgrid, but where this is located, what the implications
SPEAKER_02: are on the grid, and then also what are the stakeholders as we think about community resiliency,
SPEAKER_02: what would be an entity that would help support that?
SPEAKER_02: Is there support for that?
SPEAKER_02: How do we find that?
SPEAKER_02: So we're working through that as well as the design for the systems.
SPEAKER_02: The other thing we recognize is as tax credits are expiring, and then we've got tariffs,
SPEAKER_02: there's costs that are going up too.
SPEAKER_02: So those are all considerations that we need to watch as we're continuing to scope those
SPEAKER_02: programs.
SPEAKER_02: But as we think about looking ahead from exploring local solar options, because of the success
SPEAKER_02: of the enrollment of residential solar shares, we are going to start having the conversation
SPEAKER_02: of exploring additional solar to support the additional participation.
SPEAKER_02: So we'll be looking at that over the next year.
SPEAKER_02: And then the other thing I'll mention is when we did that board panel in February on community
SPEAKER_02: solar, there was someone from Rocky Mountain Institute, and he talked about the concept
SPEAKER_02: of community solar plus.
SPEAKER_02: And their concept was, hey, if you can find other revenue streams to help offset the investment
SPEAKER_02: costs associated with community solar, then is there a way to be able to encourage more
SPEAKER_02: of it?
SPEAKER_02: They had talked about additional revenue streams, including things like if you have canopy parking,
SPEAKER_02: like charging more cost for the parking.
SPEAKER_02: They had actually also said, I think in maybe some areas they've looked at, where car insurance
SPEAKER_02: for fleets might actually be lower if it's under a canopy solar.
SPEAKER_02: Again, we're working against the high costs of canopy solar and increasing costs that
SPEAKER_02: we're seeing across the board.
SPEAKER_02: But we actually did some work.
SPEAKER_02: So strategy staff worked with RMI following the February board meeting, did some, like
SPEAKER_02: created an Excel spreadsheet that creates a financial model to be able to help better
SPEAKER_02: prospect potential sites for location of solar, and then considering how if adding solar and
SPEAKER_02: storage might be beneficial for the grid, to be able to look at ways to better evaluate,
SPEAKER_02: like as we think about putting in potentially additional solar systems to either support
SPEAKER_02: community solar and things like that, obviously cost is a key thing that we have to look at.
SPEAKER_02: But are there ways to find or be able to take advantage of some of those potential alternative
SPEAKER_02: sources of revenue that can help buy down the cost and really help us find lower solar
SPEAKER_02: cost options or lower total investment cost options because other people are paying for
SPEAKER_02: some of the value that they get for whether it's covered parking or lower insurance rates
SPEAKER_02: and things like that.
SPEAKER_02: So just wanted to share that we've been working on that.
SPEAKER_02: Okay.
SPEAKER_02: So last slides for next slide for featuring some projects.
SPEAKER_02: This project on the left is a solar canopy that's shading benches that have charging
SPEAKER_02: stations for electronics at Street Soccer USA that was funded by the Climate Advocate
SPEAKER_02: Program.
SPEAKER_02: So as of the end of July, we have 759 customers on that program that contribute on average
SPEAKER_02: about $5 a month.
SPEAKER_02: The middle picture we've got Director Tamayo with the team getting the word out about
SPEAKER_02: our green pricing programs.
SPEAKER_02: So we're leveraging our community outreach events to drive additional enrollments into
SPEAKER_02: our program.
SPEAKER_02: So far we've had 35 customers over three events enrolled on site, 177 leads and 349 interest
SPEAKER_02: surveys that have been completed.
SPEAKER_02: And then on the left we've got Puja who is our Solar Shares Program Manager and Dijana
SPEAKER_02: who is our Greenergy Program Manager in front of CalPERS.
SPEAKER_02: And so wanted to recognize CalPERS, they are both currently a commercial Solar Shares
SPEAKER_02: customer as well as a Greenergy customer.
SPEAKER_02: And the notable thing is that last year we made a decision to discontinue the California
SPEAKER_02: renewable option because we saw PCC1 Rec prices go up by 4X between 2024 and 2025.
SPEAKER_02: And CalPERS was the only state agency that maintained their commitment to 100% California
SPEAKER_02: generated carbon free renewables in 2025.
SPEAKER_02: So definitely wanted to recognize them, appreciate their commitment to renewables as well as
SPEAKER_02: California renewables as part of our program.
SPEAKER_02: Next slide.
SPEAKER_02: So part of this presentation every year is also to share where we are in terms of both
SPEAKER_02: applications and installations for customer behind the meter solar.
SPEAKER_02: I know the board gets a periodic report on this as well.
SPEAKER_02: As you can see from this slide, overall year over year, total if you combine residential
SPEAKER_02: and commercial, we are still seeing an increase in applications and installations when you
SPEAKER_02: combine residential and commercial from 2024 to 2025 as you look at sort of comparable
SPEAKER_02: times, January through August of 2023.
SPEAKER_02: We do see, as you see, the differential between the lower color which is a blue and the upper
SPEAKER_02: color which is a green, that a large majority of these installations are new construction
SPEAKER_02: versus retrofit.
SPEAKER_02: You do see that the forecast for commercial is very, very high.
SPEAKER_02: The forecast for residential is slightly below 2024.
SPEAKER_02: We're watching this.
SPEAKER_02: The reality is with the expiration of the federal tax credit by the end of the year,
SPEAKER_02: we could very well see a run up that actually bumps our installations in 2025 above what
SPEAKER_02: we see for 2024 installation numbers.
SPEAKER_02: And then next slide.
Unknown: Oh, sorry.
SPEAKER_02: I do know the megawatts.
SPEAKER_02: So in 2024, we added approximately 35 megawatts of solar, 25 megawatts for residential, 10
SPEAKER_02: megawatts of commercial.
SPEAKER_02: This was from 6,344 applications and 6,035 installations.
SPEAKER_02: And in 2025 through August 23rd, those were total 2024, the whole year numbers.
SPEAKER_02: 2025, we've added 22.19 megawatts from 4,986 applications, 4,097 installations.
SPEAKER_02: Okay.
SPEAKER_07: Thank you.
Unknown: Mm-hmm.
SPEAKER_02: Okay.
SPEAKER_02: So in summary, we have made a lot of good progress in our programs.
SPEAKER_02: There is a lot to celebrate.
SPEAKER_02: However, the loss of external funding have a lot of policy changes both at the federal
SPEAKER_02: and state level.
SPEAKER_02: Tariff supply chain challenges is definitely making achieving the steeper curve more challenging.
SPEAKER_02: We are out of the flat sort of part of the curve and we're in that exponential growth
SPEAKER_02: of the curve as you look at our ZCP goals.
SPEAKER_02: I've talked about the work that we're doing with integrated distribution resources planning.
SPEAKER_02: That analysis is going to feed into our integrated resource planning starting in 2026.
SPEAKER_02: And that's really going to inform new goal trajectories for all of our DER portfolios.
SPEAKER_02: And you've heard me say it throughout this presentation, but it's really, really going
SPEAKER_02: to be important for us to focus our efforts.
SPEAKER_02: Like, we want to make sure we're supporting our partnership with our customers.
SPEAKER_02: Affordability is really, really important.
SPEAKER_02: And so, especially with this uncertain economic environment, we really need to be focused
SPEAKER_02: on the highest priority things for our, as we think about what we want to offer to our
SPEAKER_02: customers to be able to make the most progress across these portfolios.
SPEAKER_02: And then the last slide.
SPEAKER_02: So I will take questions, but the last slide, I wanted to share this.
SPEAKER_02: So next slide is after the strategy team and the delivery team combined, we did a team
SPEAKER_02: building event at the food literacy center.
SPEAKER_02: And so we pulled weeds.
SPEAKER_02: I think people were doing wheelbarrows of stuff.
SPEAKER_02: Someone had a chainsaw.
SPEAKER_02: But this is the combined strategy and delivery team, oops, sorry, with a few of the grants
SPEAKER_02: team participating as well.
SPEAKER_02: But the cool thing about the food literacy center, so not only did we do this team building
SPEAKER_02: event, which was great, and doing this all together, but for those of you that know Ryan
SPEAKER_02: Hammond, he gets super excited when he's talking about a building electrification project.
SPEAKER_02: And the food literacy center is very unique.
SPEAKER_02: So he gave us tours after we had done pulling weeds.
SPEAKER_02: He said, this is the first and only customer that we know of that incorporated a refrigerant
SPEAKER_02: to water heater, a water heat exchanger for a terminal unit for a variable refrigerant
SPEAKER_02: flow system.
SPEAKER_02: So basically the variable refrigerant flow system rejects valuable building heat indoors
SPEAKER_02: to preheat domestic hot water for the building instead of what traditionally they reject
SPEAKER_02: outdoors.
SPEAKER_02: So traditionally that heat goes outside and it heats the atmosphere, but instead they funnel
SPEAKER_02: the water into the heat into the water and into the water heater.
SPEAKER_02: And the people at the food literacy center, like when I turn on the water, like I'm going
SPEAKER_02: to burn my hand.
SPEAKER_02: Like it's that's, and it's that cool, right?
SPEAKER_02: So it in turn heats the domestic hot water through the act of cooling.
SPEAKER_02: So they only have to pay to cool.
SPEAKER_02: And that in parallel is also heating their hot water.
SPEAKER_02: So just really great opportunity for the team to do a team building event, but also really
SPEAKER_02: cool to be at a site that has done induction cooking and some really, really innovative
SPEAKER_02: heat pump and electrification work.
SPEAKER_02: So with that, I'm happy to take any additional questions.
Unknown: Right.
Unknown: Thank you for that.
SPEAKER_08: Are there any board member questions before we go?
SPEAKER_08: Okay.
SPEAKER_08: I have a number of public comments too, but we'll do the public comments first.
SPEAKER_08: Okay.
SPEAKER_08: Just a reminder, please speak in the microphone at the podium.
SPEAKER_08: State your name for the record and then please do not touch the microphone.
SPEAKER_08: They'll adjust the volume for down for you in the background as well.
SPEAKER_08: I have three speakers.
SPEAKER_08: Do you have any particular opinion or no?
SPEAKER_08: Okay.
SPEAKER_08: Then we'll start with David Wright.
Unknown: Hi, everybody.
Unknown: Good to see you.
SPEAKER_01: Thank you for that.
SPEAKER_01: Miss Wong.
SPEAKER_01: Kudos to SMUD and the team for increasing commercial electrification and multifamily
SPEAKER_01: projects, smart prospective urban solar siting.
SPEAKER_01: Those are all fantastic things.
SPEAKER_01: I also loved the point about encouraging financial help in getting over the customer's initial
SPEAKER_01: cost hump because as I've said before, all my experience with energy saving measures
SPEAKER_01: is you save money on them on the long term, but getting over that initial cost hump is
SPEAKER_01: what's difficult for almost everybody.
SPEAKER_01: So why not help customers get over that hump and then you can recoup your cost in helping
SPEAKER_01: them over time.
SPEAKER_01: I was puzzled by the lack of anything about vehicle to grid.
SPEAKER_01: I have talked about this before and it's always in the future.
SPEAKER_01: It's in the future.
SPEAKER_01: How long is this going to keep being in the future?
SPEAKER_01: There are vehicles out there right now that can power your home with an additional device.
SPEAKER_01: One that comes to mind is the Ford Lightning and there are others that I've heard of, but
SPEAKER_01: I don't know details on those.
SPEAKER_01: So why not get ahead of the curve here?
SPEAKER_01: Why not get something going that propels the market to do as you do?
SPEAKER_01: So that would be my suggestion.
SPEAKER_01: That's a huge way for SMUD to leverage people's investment in these vehicles to provide a
SPEAKER_01: service that SMUD needs.
SPEAKER_01: And finally, I have some ideas I'll probably send you guys on e-mail.
SPEAKER_01: I saw an article about solar between rails.
SPEAKER_01: So that was an interesting idea.
SPEAKER_01: Solar thermal hot water.
SPEAKER_01: That would obviate the need for these heat pump water heaters, very expensive water heaters.
SPEAKER_01: And it would also reduce electricity load.
SPEAKER_01: So maybe you'd get to 20, 30 faster or zero carbon faster.
SPEAKER_01: Finally, I would challenge the assumption that customers of EVs need level 2 charging.
SPEAKER_01: I have an EV and I do not have level 2 charging.
SPEAKER_01: I plug into a 220 outlet and I almost never need any additional charging.
SPEAKER_01: When I do, it's very convenient to go to the fast charger here at SMUD.
SPEAKER_01: So thank you for that.
Unknown: All right.
Unknown: Thank you for your comments.
SPEAKER_08: Next they have Rick Codina.
SPEAKER_07: Thank you, Rachel, and thank you, board members.
SPEAKER_07: I'd like to briefly summarize the two comments we submitted, Rosie, on behalf of the 350
SPEAKER_07: building electrification team.
SPEAKER_07: First we'd like to, like SMUD, explore expanding the lapsed commercial storage program.
SPEAKER_07: It began five years ago.
SPEAKER_07: It was an award winning program.
SPEAKER_07: Committed four megawatts of battery shares on the grid.
SPEAKER_07: Electrify America promptly bought all the available shares for their 12 charging stations.
SPEAKER_07: They're the only customer and the program is presently inactive.
Unknown: The program allowed customers with low load factors to buy shares in SMUD's storage offset
SPEAKER_07: peak demand charges.
SPEAKER_07: So we think the program would be a great assist to large restaurants who are considering building
SPEAKER_07: cooking electrification.
SPEAKER_07: They would incur high demand during peak dinner hours and so after installing cooking equipment
SPEAKER_07: so they could benefit from this program.
SPEAKER_07: So we think it should be looked at again.
SPEAKER_07: Secondly we commend SMUD for continuing what are probably the best utility electrification
SPEAKER_07: rebates in the state.
SPEAKER_07: But we do have to point out that the goals that are used continue to not really show
SPEAKER_07: the results in terms of the actual turnover of units because of burnout or compare them
SPEAKER_07: in the context of the remaining stock.
SPEAKER_07: So as we have documented, the heat pump conversions, while they are impressive, they fall short
SPEAKER_07: of capturing the actual 20,000 to 24,000 gas appliances that burn out annually.
SPEAKER_07: Most of these are now being replaced with gas units who will remain in stock producing
SPEAKER_07: unnecessary greenhouse gases for the next 15 to 20 years.
SPEAKER_07: It's not meant as a criticism.
SPEAKER_07: SMUD is doing a great job but it is a huge lost opportunity and we see the need to step
SPEAKER_07: up beyond rebate offerings.
SPEAKER_07: You guys are working on a lot of things.
SPEAKER_07: Here's a few ideas some of you are already doing.
SPEAKER_07: We would like, for example, to have SMUD join us in lobbying to create ordinances and regulations
SPEAKER_07: that would mandate heat pump replacements on burnout at the city, county or most effectively
SPEAKER_07: at the Air Quality Management Board.
SPEAKER_07: Low cost financing, as has been mentioned here, there's a good program being promoted
SPEAKER_07: by the City of Elk Grove for pay as you save.
SPEAKER_07: We also are supporting more convenient electronic permitting for electrification switch outs
SPEAKER_07: with the City of Sacramento and they have expressed some interest in possibly going
SPEAKER_07: that route to make it much easier for contractors to go through the permitting process for heat
SPEAKER_07: pump conversions.
SPEAKER_07: Bulk purchases, I think you are looking at that for recommended equipment to sell with
SPEAKER_07: less markup.
SPEAKER_07: We don't have all the answers but we hope that SMUD will continue its leadership on
SPEAKER_07: electrification by exploring new effective options in the future besides rebates.
SPEAKER_07: Thank you.
SPEAKER_08: Thank you, Rick.
SPEAKER_08: The last card I have is John Weber.
SPEAKER_00: Good evening, Board.
Unknown: I want to give a big shout out to Rachel and all her staff for putting this presentation
SPEAKER_00: together.
SPEAKER_00: Also I attended a workshop earlier this year about zero carbon and Josh Langdon, Abadiah
SPEAKER_00: Bartholomew and Brian Swan were involved with that and they did a great job as well.
SPEAKER_00: Josh suggested I watch the April 16th meeting, which I did.
SPEAKER_00: It sounded like SMUD isn't a big cause of air pollution in our area.
SPEAKER_00: I found the Board discussion very insightful.
SPEAKER_00: It sounds like vehicles are a major source of pollution, which SMUD addresses by promoting
SPEAKER_00: EVs.
SPEAKER_00: In the winter a major source is wood burning.
SPEAKER_00: SMUD addresses this by promoting heat pumps.
SPEAKER_00: They are cleaner, cheaper to fuel and more convenient than wood.
SPEAKER_00: Great work, everyone.
SPEAKER_00: That 10 shows we have about 70,000 EVs now.
SPEAKER_00: If each one of them had a 70 kilowatt hour battery, that would be 4.9 gigawatt hours
SPEAKER_00: of storage, if I did my math correctly.
SPEAKER_00: Bi-directional chargers are now available to integrate those electrons into the grid
SPEAKER_00: when needed.
SPEAKER_00: This tool could make home battery storage go the way of eight track tape players.
SPEAKER_00: Please consider shifting some incentive money from home storage to bi-directional charging.
SPEAKER_00: There are multiple units available right now and there will be more next year.
SPEAKER_00: By the middle of next year I think Enphase will have theirs done, another California
SPEAKER_00: company.
SPEAKER_00: I thought it was great to hear that SMUD is working with RMI because they're a leader
SPEAKER_00: in this field.
SPEAKER_00: I was thinking about Director Fishman talking about his old hot water heater.
SPEAKER_00: This wasn't part of my prepared comments.
SPEAKER_00: Maybe SMUD needs a cash for clunkers program for these old hot water heaters.
SPEAKER_00: Just something to think about, give people the extra push to replace these units before
SPEAKER_00: they go back.
SPEAKER_04: Well, that's kind of where I was going.
SPEAKER_00: Rachel I will give the board member credit for that suggestion and you all have a great
SPEAKER_00: evening.
SPEAKER_00: Thanks for all the work you're doing.
SPEAKER_08: Thank you for that.
SPEAKER_08: Thank you all for coming and joining us tonight.
SPEAKER_08: I know we typically hear you virtually so it's good to see your faces.
SPEAKER_08: Rachel, I would be curious if you might say just a couple of words about some of our VGI
SPEAKER_08: and managed charging.
SPEAKER_08: We talked about managing when it's more about controlling when the vehicle charges versus
SPEAKER_08: a V2X kind of setup.
SPEAKER_02: Just to speak to the comments with regards to V2G, we do see that as an opportunity as
SPEAKER_02: you look at our zero carbon plan.
SPEAKER_02: Actually in the load flexibility portfolio we did make some assumptions of how much V
SPEAKER_02: to G or V to X we would have in terms of capacity.
SPEAKER_02: My report out tonight was primarily on our operational customer programs and looking
SPEAKER_02: ahead of what will be coming into those operational programs.
SPEAKER_02: James Frazier is actually coming in October I think next month to talk about SD10 and
SPEAKER_02: maybe SD19 in which from an R&D standpoint which is SD10 is innovation, I think he will
SPEAKER_02: be covering more details on what we're doing in the V to G space which is the organization
SPEAKER_02: that's been leading the work there.
SPEAKER_02: Once it's in that operational program phase or ready to get to that operational program
SPEAKER_02: phase that's actually when it switches to my organization.
SPEAKER_02: Not that SMUD is not doing stuff in that space, it's more just the scope of what we cover
SPEAKER_02: today versus other presentations.
SPEAKER_08: Any commentary about appliance turnover rates?
SPEAKER_02: Definitely appreciate the sentiment and thus why we've been working on things like turn
SPEAKER_02: key hot water heating, recognizing how do you start making more progress and very much
SPEAKER_02: appreciate that you acknowledge that we have been doing really well with regards to as
SPEAKER_02: you look at the market share.
SPEAKER_02: The other thing that we need to consider is even to this day a lot of the HVAC replacements
SPEAKER_02: are still not permitted, those numbers are pretty dismal.
SPEAKER_02: So it's very hard for us to understand or to know and kind of track that information.
SPEAKER_02: If you don't even have systems that are being permitted, let alone considerations for that
SPEAKER_02: transition from gas to electric, I think those are some of those things too of how do we
SPEAKER_02: work with Oracle jurisdictions or how do we work relative to those things that we can
SPEAKER_02: try to address together.
SPEAKER_02: So happy to talk offline with regards to that.
SPEAKER_02: It's definitely something that we look to if you look at how SMUD is doing relative
SPEAKER_02: to the market share.
SPEAKER_02: Like you said, around 30%, which is pretty substantial, especially relative to knowing
SPEAKER_02: what percentage of HVAC change outs are permitted.
SPEAKER_02: But it doesn't mean that we stop, right?
SPEAKER_02: It doesn't mean that we don't press forward to try to do more.
Unknown: Okay.
Unknown: Thank you for that.
SPEAKER_08: I think Director Brew-Thompson, do you still have a comment?
SPEAKER_05: Thank you.
SPEAKER_05: It's a lot of programs.
SPEAKER_05: I know that just to emphasize to the 12 listeners is there's several different components to
SPEAKER_05: how we electrify and this is just one large one.
SPEAKER_05: So I just wanted to say thank you and I will echo, thank you Mr. Wright.
SPEAKER_05: I've had two electric cars on and off for 10 years and we actually didn't even have
SPEAKER_05: a 220.
SPEAKER_05: We charge two, one on one 10, if you can imagine that.
SPEAKER_05: So I really love seeing those programs, especially in high density, multifamily homes.
SPEAKER_05: I know that's what I hear from a lot of people.
SPEAKER_05: And that's how Europe actually does a lot of their just even garages, apartments.
SPEAKER_05: It's a bring your own model.
SPEAKER_05: And so I'm excited to see more of that because most people don't even actually need a 220
SPEAKER_05: for a lot of the time.
SPEAKER_05: Just a option for one 10 is great.
SPEAKER_05: I always say if I never see another fast charger being built in our district, it would be too
SPEAKER_05: soon because they're just really expensive for the amount of money.
SPEAKER_05: But I do appreciate just the variety of projects that you all try to balance with the varying
SPEAKER_05: needs of our constituents.
SPEAKER_05: So I am looking forward to diving in a little bit more both for innovation and for the EV
SPEAKER_05: conversation in November.
SPEAKER_05: But I just want to say, thank you.
SPEAKER_05: It's a lot of work to be able to balance our commercial and residential needs and all the
SPEAKER_05: things everybody wants to do with a finite amount of money now with the uncertainty with
SPEAKER_05: the federal government and funding.
SPEAKER_05: So it'll be harder to do more programs, but I know you all will stretch every dollar possible
SPEAKER_05: to get the bang for a buck.
SPEAKER_05: Thank you.
SPEAKER_02: Thank you.
SPEAKER_02: And actually, I'm a big proponent of 110 as well.
SPEAKER_02: I had an EV for six years before we had level two.
SPEAKER_02: The only reason why we put in level two, I tell everybody, is because we put in patio
SPEAKER_02: heating, electric patio heating.
SPEAKER_02: So we were kind of like, oh, we'll just do it while we're doing that.
SPEAKER_02: But we were on level one for six years.
Unknown: So.
Unknown: Director Herbert.
SPEAKER_06: So I, too, want to thank you and your team for this update on the zero carbon plan.
SPEAKER_06: I can see we are making progress.
SPEAKER_06: I like how thoughtful and strategic you all are, although that is your job.
SPEAKER_06: But still, it's showing up.
SPEAKER_06: And I continue to hear good things from our customers.
SPEAKER_06: They're pleased with the rebates that we're offering them to take this step.
SPEAKER_06: And without them, folks would not be doing this.
SPEAKER_06: So I think your team is doing a good job.
Unknown: Great.
Unknown: Thank you.
Unknown: Any other comments?
Unknown: I would just say, as we look at some of these goals, like we've been in the sort of the
SPEAKER_08: easy years.
SPEAKER_08: Because they've done a lot of work and staffs work hard to accomplish it.
SPEAKER_08: And there's still thousands.
SPEAKER_08: But we see that exponential increase into 2030.
SPEAKER_08: And it certainly makes me nervous.
SPEAKER_08: I think it's still probably too early.
SPEAKER_08: But I think maybe some of that IRP work will help us uncover some of the repercussions
SPEAKER_08: of all the changes that are going on in the electrification space.
SPEAKER_08: And make sure that those goals are still going to be somewhat realistic.
SPEAKER_08: We want to keep charging hard.
SPEAKER_08: But I also don't want us to end up in a few years building nowhere close and getting all
SPEAKER_08: this criticizing, right?
SPEAKER_08: There's so many headwinds right now that we're trying to navigate.
SPEAKER_08: It's something that's sort of in the back of my mind that we'll want to continue to think
SPEAKER_08: about as things keep moving forward.
Unknown: Yeah.
Unknown: Good.
Unknown: Thank you.
SPEAKER_08: That's all I have.
SPEAKER_08: I have another.
SPEAKER_08: I have anything else for this agenda item?
SPEAKER_08: I have one public comment.
SPEAKER_08: Mr. Wright, do you have a card for items not on the agenda?
Unknown: Okay.
SPEAKER_08: Go ahead and come up.
Unknown: Hi.
SPEAKER_01: David Wright.
SPEAKER_01: This is about Coyote Creek solar.
SPEAKER_01: And I'm speaking here for Sacramento 350 as well as myself.
SPEAKER_01: This is not a good project.
SPEAKER_01: And I think that I've been telling you guys that for two years or more.
SPEAKER_01: And there is going to be significant opposition continuing to the project.
SPEAKER_01: You have the opportunity to save everybody a lot of time, a lot of effort, a lot of money
Unknown: by just saying we're walking away from this project right now.
SPEAKER_01: You can do that.
SPEAKER_01: The project is out of compliance with the contract.
SPEAKER_01: They're probably going to come back to you for more money.
SPEAKER_01: So I would say just say no.
SPEAKER_01: It's a terrible place, terrible place for this.
SPEAKER_01: And you were I hear you were deceived about that when they came in.
SPEAKER_01: So you have every justification and duty to walk away from that project.
SPEAKER_01: I want the solar, but I want it somewhere else.
SPEAKER_01: Thank you.
Unknown: Okay.
SPEAKER_01: Thank you for your comments.
Unknown: Is there any summary of community direction?
Unknown: I don't think we created any work.
Unknown: Oh, yeah.
SPEAKER_03: I don't.
SPEAKER_03: There's no other public comment.
SPEAKER_03: And there's no summary of community direction.
SPEAKER_03: Okay.
SPEAKER_08: A crucial comment.
SPEAKER_08: Thank you.
SPEAKER_08: I'll just say thank you, Rachel.
SPEAKER_08: And thank you to the staff supporting this item.
SPEAKER_08: And we will be adjourned.