WEBVTT 00:00:00.000 --> 00:00:01.100 Unknown: Hooookkkkkkkkkkkkkkkkkkk Yesa 00:00:01.459 --> 00:00:06.080 Unknown: ???? 00:00:06.100 --> 00:00:08.259 SPEAKER_10: completting 00:00:08.599 --> 00:00:24.660 Unknown: what does the 00:05:54.660 --> 00:06:13.379 Unknown: All right, there comes Nancy. 00:06:13.379 --> 00:06:19.860 Unknown: All right, you guys, let's go ahead, about five seconds. 00:06:19.860 --> 00:06:27.740 Unknown: All right, good evening and welcome to the Finance and Audit Committee and Special Board 00:06:27.740 --> 00:06:30.740 SPEAKER_12: Meeting of May 19, 2026. 00:06:30.740 --> 00:06:34.340 SPEAKER_12: This meeting is being recorded and can be accessed on SMUD's website. 00:06:34.340 --> 00:06:38.220 SPEAKER_12: Please remember to unmute your microphone when speaking in order that our virtual attendees 00:06:38.220 --> 00:06:39.420 SPEAKER_12: may hear. 00:06:39.420 --> 00:06:43.060 SPEAKER_12: The microphone will display a green indicator light when the mic is on. 00:06:43.060 --> 00:06:46.220 SPEAKER_12: For members of the public attending in person that wish to speak at this meeting, please 00:06:46.220 --> 00:06:50.420 SPEAKER_12: fill out a speaker's request form located on the table outside this room and have it 00:06:50.420 --> 00:06:52.500 SPEAKER_12: to SMUD security. 00:06:52.500 --> 00:06:55.740 SPEAKER_12: Members of the public attending this meeting virtually that wish to provide verbal comments 00:06:55.740 --> 00:07:00.580 SPEAKER_12: during the committee meeting may do so by using the raised hand feature in Zoom or pressing 00:07:00.580 --> 00:07:04.580 SPEAKER_12: star nine on your phone at the time public comment is called. 00:07:04.580 --> 00:07:07.540 SPEAKER_12: Technical support staff will enable the audio for you when your name is announced during 00:07:07.540 --> 00:07:09.980 SPEAKER_12: the public comment period. 00:07:09.980 --> 00:07:14.540 SPEAKER_12: You may also submit written comments by emailing them to publiccommentat smud.org. 00:07:14.540 --> 00:07:18.100 SPEAKER_12: Written comments will not be read into the record but will be provided to the board electronically 00:07:18.100 --> 00:07:21.220 SPEAKER_12: and placed in the record of the meeting if received within two hours after the meeting 00:07:21.220 --> 00:07:22.220 SPEAKER_12: ends. 00:07:22.220 --> 00:07:25.020 SPEAKER_12: Will the Chief Legal Officer please conduct the roll call? 00:07:25.020 --> 00:07:26.020 Unknown: Dr. Kurth? 00:07:26.020 --> 00:07:27.020 SPEAKER_01: Here. 00:07:27.020 --> 00:07:28.020 SPEAKER_01: Dr. Buettomson? 00:07:28.020 --> 00:07:29.020 SPEAKER_01: Present. 00:07:29.020 --> 00:07:30.020 SPEAKER_01: Chair Rose? 00:07:30.020 --> 00:07:31.020 SPEAKER_12: I'm here. 00:07:31.020 --> 00:07:32.460 SPEAKER_01: All committee members are present. 00:07:32.460 --> 00:07:36.420 SPEAKER_01: Also present are directors Fishman, Herber, Sanborn and present Tamayo. 00:07:36.420 --> 00:07:38.060 Unknown: Perfect, thank you. 00:07:38.060 --> 00:07:40.900 SPEAKER_12: So we have a quick agenda tonight. 00:07:41.419 --> 00:07:46.819 SPEAKER_12: Number one is to discuss adopting amendments to SMUD's 2026 salary schedule and we have 00:07:46.819 --> 00:07:50.299 SPEAKER_12: Matthew Powell, our Manager of Classification, Compensation and Performance. 00:07:50.299 --> 00:07:52.899 Unknown: Great, thank you. 00:07:52.899 --> 00:07:56.620 SPEAKER_06: As mentioned, my name is Matthew Powell, Manager of Compensation, Classification and Performance 00:07:56.620 --> 00:08:03.139 SPEAKER_06: and going to present an update to the 2026 board approved salary schedule. 00:08:03.139 --> 00:08:08.699 SPEAKER_06: So in December 11th last year, the board approved the 2026 salary schedule. 00:08:08.699 --> 00:08:13.219 SPEAKER_06: As OSCE and IBEW were currently in active negotiations at that time, the schedule included 00:08:13.219 --> 00:08:16.300 SPEAKER_06: the 2025 wages for both of those groups. 00:08:16.300 --> 00:08:22.219 Unknown: Additionally, PAS and confidential employees received a 3.5% structure adjustment in wages 00:08:22.219 --> 00:08:28.259 SPEAKER_06: in December last year and this was also reflected in that initially approved schedule. 00:08:28.259 --> 00:08:33.580 SPEAKER_06: Following successful ratification of the MOUs for both OSCE and IBEW, staff have updated 00:08:33.580 --> 00:08:39.700 SPEAKER_06: the 2026 salary schedule to reflect the wage rates as negotiated and agreed upon. 00:08:39.700 --> 00:08:45.940 Unknown: Additionally, PAS and confidential employees also received an additional 0.5% in April of 00:08:45.940 --> 00:08:50.300 SPEAKER_06: 2026, up to 4% in their structure adjustment. 00:08:50.300 --> 00:08:55.020 SPEAKER_06: This updated wage schedule is presented to the Board of Directors for consideration and 00:08:55.020 --> 00:09:00.620 SPEAKER_06: approval with the previously mentioned adjustments to comply with CalPERS regulations and requirements 00:09:00.620 --> 00:09:03.779 SPEAKER_06: and the public employees retirement law. 00:09:03.779 --> 00:09:08.100 SPEAKER_06: Approval of the adjusted salary schedule mid-year will ensure SMUD employees and retirees will 00:09:08.100 --> 00:09:14.379 SPEAKER_06: have their total wages calculated in any 2026 CalPERS retirement calculations. 00:09:14.379 --> 00:09:20.820 SPEAKER_06: This is the conclusion and I'll take any questions that you may have. 00:09:20.820 --> 00:09:24.580 Unknown: All right. 00:09:24.580 --> 00:09:25.580 SPEAKER_12: I don't have any questions. 00:09:25.580 --> 00:09:28.580 SPEAKER_12: Are there any public comments? 00:09:29.580 --> 00:09:30.580 SPEAKER_12: I do not expect so. 00:09:30.580 --> 00:09:32.580 Unknown: No, I don't see any hands now. 00:09:32.580 --> 00:09:33.580 Unknown: Perfect. 00:09:33.580 --> 00:09:34.580 SPEAKER_12: Thank you. 00:09:34.580 --> 00:09:35.580 Unknown: Thank you. 00:09:35.580 --> 00:09:44.220 Unknown: So item number two is to discuss adopting a resolution calling for the election for 00:09:44.220 --> 00:09:49.780 SPEAKER_12: the Directors for awards 3, 4, 6 and 7 and requesting Sacramento County to consolidate 00:09:49.780 --> 00:09:54.660 SPEAKER_12: that election with the November 3rd, 2026 general election. 00:09:54.660 --> 00:09:57.800 SPEAKER_12: This will be the consent calendar item on the Thursday board meeting. 00:09:58.039 --> 00:10:01.679 SPEAKER_12: We have Laura Lewis, our chief legal officer. 00:10:01.679 --> 00:10:06.479 SPEAKER_01: Yes, this is something the board requires to do every time there's an election and that 00:10:06.479 --> 00:10:11.240 SPEAKER_01: is the MUDAC requires that the board call the election and request its consolidation 00:10:11.240 --> 00:10:14.719 SPEAKER_01: with the November 3rd general election. 00:10:14.719 --> 00:10:19.199 SPEAKER_01: The deadline for making or for filing that resolution is July 1st, 2026. 00:10:19.199 --> 00:10:22.419 SPEAKER_01: Go to the next slide. 00:10:22.419 --> 00:10:28.219 SPEAKER_01: There are four impacted words, word 3 with Greg Fishman as the incumbent, word 4 with 00:10:28.219 --> 00:10:33.819 SPEAKER_01: Rosanna Herber, word 6 with Dave Tamayo, word 7 with Heidi Sanborn and the estimated cost 00:10:33.819 --> 00:10:38.139 SPEAKER_01: for the election is about $1.2 million. 00:10:38.139 --> 00:10:39.620 SPEAKER_01: The next slide. 00:10:39.620 --> 00:10:42.179 SPEAKER_01: So the board has three choices to make. 00:10:42.179 --> 00:10:47.139 SPEAKER_01: The first is the length in the form of candidate statements and you'll see historically the 00:10:47.139 --> 00:10:51.419 SPEAKER_01: board is elected to limit the statements to 200 words. 00:10:51.419 --> 00:10:58.419 SPEAKER_01: This year there's a new option for candidates to submit online only statements at a significant 00:10:58.419 --> 00:10:59.419 SPEAKER_01: lower cost. 00:10:59.419 --> 00:11:08.659 SPEAKER_01: You'll see the cost for the online statements are $300 for every, regardless of the ward, 00:11:08.659 --> 00:11:12.699 SPEAKER_01: you'll see the cost on the left of the printed statements that range anywhere from about 00:11:12.699 --> 00:11:19.899 SPEAKER_01: $4800 to about $7100 and all depends on the number of registered voters in the ward. 00:11:19.899 --> 00:11:26.179 SPEAKER_01: The other option is to allow for up to 400 words at an additional cost. 00:11:26.179 --> 00:11:30.579 SPEAKER_01: So that's something we're going to be asking the board to act on tonight and again historically 00:11:30.579 --> 00:11:34.659 SPEAKER_01: the board is elected to allow 200 words. 00:11:34.659 --> 00:11:37.659 SPEAKER_01: The next item please. 00:11:37.659 --> 00:11:46.379 SPEAKER_01: The other items the board should consider is who pays for the candidate statements. 00:11:46.379 --> 00:11:51.580 SPEAKER_01: The candidate has paid and the method of breaking a tie in the unlikely event there's 00:11:51.580 --> 00:11:58.220 SPEAKER_01: a tie the board has historically decided to determine a tie by lots which is essentially 00:11:58.220 --> 00:12:01.419 SPEAKER_01: a point of name out of a hat. 00:12:01.419 --> 00:12:05.500 SPEAKER_01: So with that I will pass it on to the board to have a discussion of all of those three 00:12:05.500 --> 00:12:07.700 SPEAKER_01: items. 00:12:07.700 --> 00:12:10.700 SPEAKER_01: This is our recommendation. 00:12:11.700 --> 00:12:18.180 SPEAKER_08: Laura, if we follow historical practice and each candidate pays for their own candidate 00:12:18.180 --> 00:12:24.140 SPEAKER_08: statement, could we choose if I wanted to do 200 and Heidi wanted to do 400 or vice 00:12:24.140 --> 00:12:27.300 SPEAKER_08: versa or does it all have to be the same? 00:12:27.300 --> 00:12:34.460 SPEAKER_01: It would have to be the same. 00:12:34.700 --> 00:12:43.180 SPEAKER_12: Just to clarify the online only, right, it's we can't say no, you can't do an online? 00:12:43.180 --> 00:12:44.180 Unknown: No. 00:12:44.180 --> 00:12:45.180 SPEAKER_12: Okay. 00:12:45.180 --> 00:12:46.180 Unknown: Yeah. 00:12:46.180 --> 00:12:49.420 Unknown: It just allows for candidates. 00:12:49.420 --> 00:12:53.139 SPEAKER_01: Yeah, it's a little less expensive. 00:12:53.139 --> 00:12:55.980 SPEAKER_12: I saw Dr. Herber's hand up first. 00:12:55.980 --> 00:12:57.900 SPEAKER_01: That's okay. 00:12:57.900 --> 00:13:02.860 SPEAKER_00: I think we should go ahead and go with the 200 words. 00:13:02.860 --> 00:13:06.340 SPEAKER_00: You know, that makes the most sense to me. 00:13:06.340 --> 00:13:14.500 SPEAKER_00: I think 400, you know, it's more expensive and I have found that, you know, when I've 00:13:14.500 --> 00:13:18.340 SPEAKER_00: done my statement, 200 words has been fine. 00:13:18.340 --> 00:13:21.340 SPEAKER_00: So my preference. 00:13:21.340 --> 00:13:24.700 Unknown: I'm fine with that. 00:13:24.700 --> 00:13:27.180 SPEAKER_11: Just got a clarification. 00:13:27.179 --> 00:13:43.500 SPEAKER_11: So if we choose either 200 or 400, the online is in addition to the printed? 00:13:43.500 --> 00:13:48.699 Unknown: It would be online only instead of in lieu of. 00:13:48.699 --> 00:13:52.899 Unknown: So that's a choice instead of the printed? 00:13:52.899 --> 00:13:53.899 SPEAKER_11: Correct. 00:13:53.899 --> 00:13:54.899 SPEAKER_11: Okay. 00:13:54.899 --> 00:13:55.899 Unknown: Go ahead. 00:13:55.899 --> 00:14:09.939 Unknown: So if an opponent files, they could still do 400 words and they could do both, right? 00:14:09.939 --> 00:14:13.299 SPEAKER_01: The board is choosing which either 200 or 400. 00:14:13.299 --> 00:14:14.980 SPEAKER_01: Oh, for everybody who applies. 00:14:14.980 --> 00:14:15.980 SPEAKER_05: Okay. 00:14:15.980 --> 00:14:17.899 SPEAKER_05: I just wanted to make sure that this would be fair. 00:14:17.899 --> 00:14:18.899 SPEAKER_05: Okay. 00:14:18.899 --> 00:14:20.539 SPEAKER_05: Well, I'm fine with this staff recommendation. 00:14:20.539 --> 00:14:25.579 SPEAKER_05: I'm really glad they allow this new option of doing online only because the cost is quite 00:14:25.579 --> 00:14:29.659 SPEAKER_05: prohibitive to a lot of people to even enter a race. 00:14:29.659 --> 00:14:32.980 SPEAKER_05: That's interesting, though, that it's not both. 00:14:32.980 --> 00:14:36.139 Unknown: Yeah, it seems like it would be both. 00:14:36.139 --> 00:14:38.699 SPEAKER_08: It seems like if you would get the printed version. 00:14:38.699 --> 00:14:42.980 SPEAKER_10: I guess, I mean, I'm not the county, but I mean, I'll definitely, I think it's Karen. 00:14:42.980 --> 00:14:46.579 SPEAKER_10: I mean, it's because there are some online only type people. 00:14:46.580 --> 00:14:55.379 SPEAKER_10: You would think if you pay the higher version, you would get the online one because you're 00:14:55.379 --> 00:14:57.580 SPEAKER_10: paying, I mean, that's something I'll write to the county. 00:14:57.580 --> 00:15:02.259 SPEAKER_10: But that just seems strange that you're paying for the higher one, but you wouldn't just 00:15:02.259 --> 00:15:04.660 SPEAKER_10: get it or give the option to do both. 00:15:04.660 --> 00:15:09.259 SPEAKER_10: Because there are some people that are, you know, millennials or whatever that don't look 00:15:09.259 --> 00:15:13.860 SPEAKER_10: at their packet, but they'll look at an online statement and it'll be blank for people that 00:15:13.860 --> 00:15:15.980 SPEAKER_10: choose the written version. 00:15:15.980 --> 00:15:18.060 SPEAKER_10: So that's interesting. 00:15:18.060 --> 00:15:24.379 SPEAKER_10: And Laura, are we choosing tonight to decide for everybody whether or not we do online 00:15:24.379 --> 00:15:25.860 SPEAKER_08: only or print only? 00:15:25.860 --> 00:15:27.460 SPEAKER_08: Is it? 00:15:27.460 --> 00:15:33.379 SPEAKER_01: It's you're choosing either 200 words or 400 words, and then these are the costs. 00:15:33.379 --> 00:15:36.419 SPEAKER_01: Online is going to be an option for either. 00:15:36.419 --> 00:15:37.419 SPEAKER_01: We don't choose that. 00:15:37.419 --> 00:15:38.420 SPEAKER_01: We don't choose that. 00:15:38.420 --> 00:15:39.420 SPEAKER_01: The county is saying this is now an option. 00:15:39.420 --> 00:15:40.420 SPEAKER_10: Yes. 00:15:40.420 --> 00:15:41.420 SPEAKER_10: Okay. 00:15:41.420 --> 00:15:42.420 SPEAKER_10: I'm just saying it doesn't make sense. 00:15:42.420 --> 00:15:43.420 SPEAKER_02: It's another option because... 00:15:43.939 --> 00:15:49.219 SPEAKER_08: So we make the choice 200 or 400 words, and then we can decide down the line whether or 00:15:49.219 --> 00:15:53.459 SPEAKER_08: not we want to do online or printed. 00:15:53.459 --> 00:15:57.740 SPEAKER_08: And any potential other candidates can also make that decision on their own. 00:15:57.740 --> 00:15:58.740 SPEAKER_08: Correct. 00:15:58.740 --> 00:15:59.740 SPEAKER_08: Okay. 00:15:59.740 --> 00:16:00.740 SPEAKER_08: And if... 00:16:00.740 --> 00:16:04.860 SPEAKER_08: I'm not advocating for this, but if we decided that SMUD should pay these costs, would SMUD 00:16:04.860 --> 00:16:06.779 SPEAKER_08: pay the costs for every candidate? 00:16:06.779 --> 00:16:07.779 SPEAKER_08: Yes. 00:16:07.779 --> 00:16:08.779 SPEAKER_08: Okay. 00:16:08.779 --> 00:16:09.779 SPEAKER_08: Then I'm definitely not advocating. 00:16:10.779 --> 00:16:18.939 Unknown: So just to clarify things, then it's an either or choice between online and printed, or is 00:16:18.939 --> 00:16:19.939 SPEAKER_03: there a both? 00:16:19.939 --> 00:16:20.939 SPEAKER_01: I think... 00:16:20.939 --> 00:16:22.379 SPEAKER_01: Well, I think if you choose... 00:16:22.379 --> 00:16:25.659 SPEAKER_01: I think that if it's online, it's online only. 00:16:25.659 --> 00:16:29.379 SPEAKER_01: If you choose printed, I believe you'd have it in both because there's going to be an 00:16:29.379 --> 00:16:31.100 SPEAKER_01: online... 00:16:31.100 --> 00:16:34.139 Unknown: I will clarify that, but I think it would be in both. 00:16:34.139 --> 00:16:38.620 SPEAKER_01: Where if you choose online only, it's online only, or you could choose printed and would 00:16:38.620 --> 00:16:39.940 SPEAKER_01: likely also show up online. 00:16:39.940 --> 00:16:41.100 SPEAKER_01: I will clarify that. 00:16:41.100 --> 00:16:46.740 Unknown: But all you have to decide tonight is really the 200 words or the 400 words. 00:16:46.740 --> 00:16:47.740 SPEAKER_04: Okay. 00:16:47.740 --> 00:16:55.019 Unknown: So it's the candidate that chooses later on if they're going to have it printed or online 00:16:55.019 --> 00:16:56.019 SPEAKER_11: only? 00:16:56.019 --> 00:16:57.019 SPEAKER_01: Correct. 00:16:57.019 --> 00:16:58.019 SPEAKER_01: Yes. 00:16:58.019 --> 00:17:00.139 SPEAKER_01: This is new for 2026, so this is new to us as well. 00:17:00.139 --> 00:17:01.139 SPEAKER_01: But we'll clarify that. 00:17:01.139 --> 00:17:04.220 SPEAKER_04: I'm supporting the 200. 00:17:04.220 --> 00:17:05.220 SPEAKER_04: It sounds like... 00:17:05.220 --> 00:17:10.900 SPEAKER_04: The Gettysburg Address has only 267 words, so we should be able to do a candidate statement 00:17:10.900 --> 00:17:11.900 SPEAKER_04: in less than that. 00:17:11.900 --> 00:17:14.980 SPEAKER_04: It's not like combining proper nouns, right? 00:17:14.980 --> 00:17:19.420 Unknown: It looks like there's an agreement on the 200 words. 00:17:19.420 --> 00:17:22.059 SPEAKER_08: 200 words and candidates pay. 00:17:22.059 --> 00:17:23.460 Unknown: Yeah, candidates pay. 00:17:23.460 --> 00:17:26.460 SPEAKER_12: Candidates pay, and then determining the tie. 00:17:26.460 --> 00:17:27.460 SPEAKER_12: By lots. 00:17:27.460 --> 00:17:28.460 SPEAKER_12: By lots. 00:17:28.460 --> 00:17:29.460 SPEAKER_12: Yeah. 00:17:29.460 --> 00:17:30.460 SPEAKER_12: All right. 00:17:30.460 --> 00:17:31.460 Unknown: So that's what we've always done. 00:17:31.460 --> 00:17:32.620 SPEAKER_01: This will be on the consent calendar. 00:17:32.619 --> 00:17:33.619 SPEAKER_01: Yep. 00:17:33.619 --> 00:17:36.299 SPEAKER_12: And then shoot us if something turns out to be different. 00:17:36.299 --> 00:17:37.299 SPEAKER_12: They'll let us know. 00:17:37.299 --> 00:17:38.299 SPEAKER_12: Yes. 00:17:38.299 --> 00:17:39.299 SPEAKER_02: I will let you know. 00:17:39.299 --> 00:17:40.299 Unknown: Yeah. 00:17:40.299 --> 00:17:42.299 SPEAKER_00: So quick question. 00:17:42.299 --> 00:17:45.139 SPEAKER_00: Drawing lots. 00:17:45.139 --> 00:17:47.659 SPEAKER_00: I'm not sure I know what that means. 00:17:47.659 --> 00:17:52.379 SPEAKER_00: Is it like one and two and then somebody picks? 00:17:52.379 --> 00:17:53.379 SPEAKER_01: Is it that simple? 00:17:53.379 --> 00:17:54.779 SPEAKER_01: I believe so, yes. 00:17:54.779 --> 00:17:55.779 SPEAKER_00: Oh, boy. 00:17:55.779 --> 00:17:56.779 SPEAKER_00: Okay. 00:17:56.779 --> 00:17:57.779 SPEAKER_01: Thanks. 00:17:57.779 --> 00:18:01.539 SPEAKER_01: And if you recall, we looked at last year the cost of having an election. 00:18:01.539 --> 00:18:07.700 SPEAKER_01: It would be about a million dollars per word, and it's likely a lot more than that now, 00:18:07.700 --> 00:18:10.339 SPEAKER_01: because that was two years ago. 00:18:10.339 --> 00:18:13.420 SPEAKER_08: The odds of having an absolute tie are pretty slim. 00:18:13.420 --> 00:18:15.420 SPEAKER_01: It's very remote. 00:18:15.420 --> 00:18:16.420 Unknown: Yeah. 00:18:16.420 --> 00:18:17.420 Unknown: Wow. 00:18:17.420 --> 00:18:22.819 Unknown: I should ask, is there any public comment on this item? 00:18:22.819 --> 00:18:24.339 SPEAKER_01: I don't see any hands now. 00:18:24.339 --> 00:18:25.339 Unknown: Perfect. 00:18:25.339 --> 00:18:26.339 Unknown: All right. 00:18:26.339 --> 00:18:27.339 Unknown: Then we'll call that. 00:18:28.339 --> 00:18:31.459 SPEAKER_12: We'll move on to item number three. 00:18:31.459 --> 00:18:35.099 SPEAKER_12: And then item number three is provide the board with SMUD's financial results from the 00:18:35.099 --> 00:18:40.299 SPEAKER_12: three-month period ending March 31, 2026, and a summary of the current power supply costs. 00:18:40.299 --> 00:18:41.299 SPEAKER_12: Okay. 00:18:41.299 --> 00:18:42.299 SPEAKER_12: Thank you. 00:18:42.299 --> 00:18:45.699 SPEAKER_07: Good evening, Chair Rose and SMUD board of directors. 00:18:45.699 --> 00:18:49.419 SPEAKER_07: I'm here to present on financial results and power supply. 00:18:49.419 --> 00:18:51.259 Unknown: Oh, yes. 00:18:51.259 --> 00:18:52.259 SPEAKER_07: Sorry. 00:18:52.259 --> 00:18:53.259 Unknown: Okay. 00:18:53.259 --> 00:18:56.980 SPEAKER_07: First, we'll start with March year-to-date financial highlights. 00:18:56.980 --> 00:19:03.620 SPEAKER_07: Consumer revenues is $389 million, which is $2 million higher than plan, driven by 00:19:03.620 --> 00:19:07.380 SPEAKER_07: larger than expected commercial usage. 00:19:07.380 --> 00:19:10.059 SPEAKER_07: Commodity expenses are $118 million. 00:19:10.059 --> 00:19:12.500 SPEAKER_07: That's 14 million over plan. 00:19:12.500 --> 00:19:15.700 SPEAKER_07: That's driven by a combination of several factors. 00:19:15.700 --> 00:19:19.420 SPEAKER_07: Low cost hydro generation has been higher than plan. 00:19:19.420 --> 00:19:25.140 SPEAKER_07: Market power prices have been lower than plan, and we've had lower fuel costs due to lower 00:19:25.140 --> 00:19:26.700 SPEAKER_07: thermal generation. 00:19:26.740 --> 00:19:33.980 SPEAKER_07: And then other operating expenses is $255 million, $6 million lower than plan, driven by timing 00:19:33.980 --> 00:19:40.059 SPEAKER_07: variances in customer services and lower than planned veg maintenance expenses. 00:19:40.059 --> 00:19:45.860 SPEAKER_07: This all leads to a net income of $32 million through March, which is $33 million higher 00:19:45.860 --> 00:19:51.980 SPEAKER_07: than our plan due to the net income of negative $1 million. 00:19:51.980 --> 00:19:54.680 SPEAKER_07: Power supply – or, I'm sorry, energy sources. 00:19:54.680 --> 00:19:58.799 SPEAKER_07: So we'll start with the chart on the left, which is just March. 00:19:58.799 --> 00:20:04.560 SPEAKER_07: Hydro is slightly under budget due to low precipitation and snowpack. 00:20:04.560 --> 00:20:08.759 SPEAKER_07: Thermal is under plan in March, and purchase power is over plan. 00:20:08.759 --> 00:20:13.279 SPEAKER_07: Those are both driven by the same factor, which is low market power prices, which makes 00:20:13.279 --> 00:20:18.519 SPEAKER_07: it more economical to buy power than to purchase – to buy power than to generate thermal 00:20:18.519 --> 00:20:19.519 SPEAKER_07: power. 00:20:19.519 --> 00:20:23.920 SPEAKER_07: Now, if you go to the year-to-date chart on the right, it's the same story there where 00:20:24.160 --> 00:20:28.680 SPEAKER_07: under and thermal generation and we're over and purchase power because of the economics, 00:20:28.680 --> 00:20:31.960 SPEAKER_07: making it cheaper to buy power on the market. 00:20:31.960 --> 00:20:40.440 SPEAKER_07: And then finally, hydro year-to-date is slightly above plan due to some early runoff in January. 00:20:40.440 --> 00:20:43.519 SPEAKER_07: Delinquency continues to go down. 00:20:43.519 --> 00:20:45.200 SPEAKER_07: So it's down $1 million from last month. 00:20:45.200 --> 00:20:47.240 SPEAKER_07: That was $28 million last month. 00:20:47.240 --> 00:20:50.640 SPEAKER_07: Now it's down to about $27 million. 00:20:50.640 --> 00:20:54.160 SPEAKER_07: Thermal and EAPR is about 70 percent of that total. 00:20:54.160 --> 00:21:01.640 SPEAKER_07: And of the $27 million, $9.2 million is currently on payment plans. 00:21:01.640 --> 00:21:06.240 SPEAKER_07: Precipitation – so when I was up here last month, it was 43 inches, and now it's 51 00:21:06.240 --> 00:21:07.240 SPEAKER_07: inches. 00:21:07.240 --> 00:21:09.880 SPEAKER_07: So we had obviously a really nice month for precipitation. 00:21:09.880 --> 00:21:12.840 SPEAKER_07: We had about eight inches in April. 00:21:12.840 --> 00:21:17.520 SPEAKER_07: And overall, we're at 95 percent of our average to date and about 90 percent of the water 00:21:17.520 --> 00:21:20.520 SPEAKER_07: year average. 00:21:20.519 --> 00:21:22.759 SPEAKER_07: Back is 21.3 percent. 00:21:22.759 --> 00:21:25.119 SPEAKER_07: Now this was as of May 11th. 00:21:25.119 --> 00:21:30.240 SPEAKER_07: I looked at the numbers again yesterday, May 18th, and that was down to 16 percent of average 00:21:30.240 --> 00:21:32.400 SPEAKER_07: at selected sensors. 00:21:32.400 --> 00:21:39.440 SPEAKER_07: We do have a full reservoir where 94 percent through May 11th. 00:21:39.440 --> 00:21:43.759 SPEAKER_07: Commodity budget – so we won't talk about the table on the left because that hasn't 00:21:43.759 --> 00:21:47.720 SPEAKER_07: changed since last month and the water year closed out and we did those transfers already, 00:21:47.720 --> 00:21:50.240 Unknown: unless anyone has questions on that. 00:21:50.960 --> 00:21:55.640 SPEAKER_07: On the charts – on the tables on the right, the commodity costs are coming in at $618 00:21:55.640 --> 00:21:57.279 SPEAKER_07: million at the end of the year. 00:21:57.279 --> 00:22:00.000 SPEAKER_07: This is $25 million over plan. 00:22:00.000 --> 00:22:04.160 SPEAKER_07: That's driven by lower than expected hydro generation the rest of the year. 00:22:04.160 --> 00:22:10.400 SPEAKER_07: Now if you go to the chart below that, you can see that number looks very low at 471 00:22:10.400 --> 00:22:12.920 SPEAKER_07: gigawatt hours below plan. 00:22:12.920 --> 00:22:16.640 SPEAKER_07: When I'm up here next month, that number is going to be a lot closer to plan. 00:22:17.360 --> 00:22:18.440 SPEAKER_07: This is sort of an anomaly. 00:22:18.440 --> 00:22:20.440 SPEAKER_07: It's a bit of a timing variance. 00:22:20.440 --> 00:22:23.280 SPEAKER_07: This forecast was put together with data through March. 00:22:23.280 --> 00:22:26.560 SPEAKER_07: It was very dry, very warm, and all that. 00:22:26.560 --> 00:22:31.040 SPEAKER_07: In April, we obviously had a lot of precipitation, so that number is going to be much closer 00:22:31.040 --> 00:22:32.640 SPEAKER_07: to plan when I'm up here next month. 00:22:32.640 --> 00:22:35.040 SPEAKER_07: I would consider this a bit of an anomaly. 00:22:37.080 --> 00:22:41.800 SPEAKER_07: Days cash – we're at 194 days, which is right on plan almost. 00:22:41.799 --> 00:22:46.759 SPEAKER_07: And then at the end of the year, we're at 196 days, which is 15 days below plan. 00:22:46.759 --> 00:22:52.279 SPEAKER_07: That's driven by the fact that we had $250 million of planned bond issuances in the 00:22:52.279 --> 00:22:58.559 SPEAKER_07: budget, and that number – now we're forecasting that we're only going to need about $200 million. 00:22:58.559 --> 00:23:02.359 SPEAKER_07: Now that's subject to change, but as of now, that's where we're at is a $200 million 00:23:02.359 --> 00:23:07.599 SPEAKER_07: estimate, and that's that green – the green peak you see there in July is the bond 00:23:07.599 --> 00:23:09.319 SPEAKER_07: issuance incoming. 00:23:09.319 --> 00:23:12.679 SPEAKER_07: And then as a last note, I would just say that we don't anticipate having any commercial 00:23:12.679 --> 00:23:14.519 SPEAKER_07: paper outstanding at your end. 00:23:14.519 --> 00:23:17.559 Unknown: With that, I can take any questions. 00:23:17.559 --> 00:23:18.559 Unknown: Yes. 00:23:18.559 --> 00:23:23.480 Unknown: So, we're doing really well, it seems like. 00:23:23.480 --> 00:23:30.839 SPEAKER_05: And when we're buying power, because it's cheaper than making it in thermal plants, 00:23:30.839 --> 00:23:36.899 SPEAKER_05: it feels like renewables are starting to – tell me if I'm wrong, but the renewables are now 00:23:36.900 --> 00:23:43.620 SPEAKER_05: much more affordable, it sounds like, than the thermal and the gas. 00:23:43.620 --> 00:23:48.340 SPEAKER_07: For sure buying in the – are you talking hydro renewables, I mean, or like solar? 00:23:48.340 --> 00:23:52.540 SPEAKER_07: Well, if you're buying on the market, I'm assuming because of our carbon goals, you're 00:23:52.540 --> 00:23:55.420 SPEAKER_05: trying to buy renewables. 00:23:55.420 --> 00:24:04.259 SPEAKER_05: So it just seems like we're at a change in the crossroads here, where gases now become 00:24:04.259 --> 00:24:09.059 SPEAKER_05: expensive and we can – and it's going to get worse, I suspect, with what's going 00:24:09.059 --> 00:24:10.140 SPEAKER_05: on in the world. 00:24:10.140 --> 00:24:11.779 SPEAKER_05: So I'm just glad. 00:24:11.779 --> 00:24:15.779 SPEAKER_05: It feels like we're at a place where, thank goodness, we have a lot of renewables in our 00:24:15.779 --> 00:24:20.859 SPEAKER_05: portfolio and we've been diverse in how we've encumbered them. 00:24:20.859 --> 00:24:22.859 SPEAKER_05: So just noticing. 00:24:22.859 --> 00:24:23.859 SPEAKER_05: Great. 00:24:23.859 --> 00:24:24.859 SPEAKER_07: Thank you. 00:24:24.859 --> 00:24:25.859 Unknown: Thank you. 00:24:25.859 --> 00:24:28.180 SPEAKER_01: Yes, the word is concerned about this, Chief League Urban Affairs Officer. 00:24:28.539 --> 00:24:34.779 SPEAKER_01: That is correct, especially during the spring months when it's sunny outside and you have 00:24:34.779 --> 00:24:39.779 SPEAKER_01: a lot of renewables, the prices are very low, even the negative. 00:24:39.779 --> 00:24:44.740 SPEAKER_01: However, during other times of the year, they're not available and that's where you need the 00:24:44.740 --> 00:24:45.740 SPEAKER_01: thermal still. 00:24:45.740 --> 00:24:49.940 SPEAKER_01: But you're right, definitely in the springtime we can ramp down our thermals and take advantage 00:24:49.940 --> 00:24:52.580 SPEAKER_01: of sometimes negative power prices. 00:24:53.579 --> 00:24:55.939 Unknown: I've got a question. 00:24:55.939 --> 00:25:02.179 SPEAKER_11: I'm not sure that this particular report is necessarily the right place to do it, but 00:25:02.179 --> 00:25:09.699 SPEAKER_11: Director Sanborn's question regarding the purchase power, I don't see that it distinguishes 00:25:09.699 --> 00:25:13.659 SPEAKER_11: whether it's renewable or thermal. 00:25:13.659 --> 00:25:16.500 SPEAKER_11: Is there a way that we can report that? 00:25:16.500 --> 00:25:22.179 SPEAKER_11: Would that be information that would be easy to include in this? 00:25:23.180 --> 00:25:27.180 SPEAKER_11: So basically splitting that green bar. 00:25:27.180 --> 00:25:35.580 Unknown: Scott Martin, CFO, one of the challenges with that is that California does not identify 00:25:35.580 --> 00:25:41.060 SPEAKER_09: the specific unit that an import comes from. 00:25:41.060 --> 00:25:48.900 SPEAKER_09: So when we buy in the market from, say, the ISO or within California, it's a generic mix. 00:25:48.900 --> 00:25:55.300 SPEAKER_09: So you don't actually get identified as solar or wind or geothermal or anything like that. 00:25:55.300 --> 00:25:57.620 SPEAKER_09: It doesn't identify that source. 00:25:57.620 --> 00:26:02.340 SPEAKER_09: We know, though, as Laura mentioned, that say in the spring, during the middle of the 00:26:02.340 --> 00:26:07.620 SPEAKER_09: day when loads are lower, there's a lot of solar online and that generally speaking you're 00:26:07.620 --> 00:26:08.780 SPEAKER_09: buying solar. 00:26:08.780 --> 00:26:15.340 SPEAKER_09: But right now the market, we're not, they don't identify, California does not identify 00:26:15.340 --> 00:26:17.660 SPEAKER_09: the specific resource that you are buying. 00:26:17.660 --> 00:26:19.019 SPEAKER_09: It's just a generic mix. 00:26:19.019 --> 00:26:27.220 SPEAKER_11: So I'm not disputing what you said, but it's curious that that would be the case because 00:26:27.220 --> 00:26:36.380 SPEAKER_11: I would think that utilities would attach value to whether something's renewable or not. 00:26:36.380 --> 00:26:41.779 SPEAKER_09: We do in most utilities when they're selling a renewable or the owner of the renewable 00:26:41.779 --> 00:26:43.820 SPEAKER_09: will keep the wreck. 00:26:43.819 --> 00:26:50.059 SPEAKER_09: So they sell it as a power resource, energy resource, but they keep the renewable attributes 00:26:50.059 --> 00:26:51.059 SPEAKER_09: for themselves. 00:26:51.059 --> 00:26:52.179 SPEAKER_09: That's what we do. 00:26:52.179 --> 00:26:57.339 SPEAKER_09: When we sell, for instance, Solano into the market or some of the resources that we have 00:26:57.339 --> 00:27:02.700 SPEAKER_09: in the south, when we sell them into the market, we keep the renewable attributes for ourselves, 00:27:02.700 --> 00:27:06.939 SPEAKER_09: but we sell the power as now it becomes non-green, right? 00:27:06.939 --> 00:27:09.220 SPEAKER_09: Because we've kept the renewable attributes for ourselves. 00:27:09.220 --> 00:27:11.500 SPEAKER_11: So it's actually tracked in a different way. 00:27:11.500 --> 00:27:12.500 SPEAKER_11: Yes. 00:27:12.500 --> 00:27:14.700 SPEAKER_11: It's not amenable to doing this. 00:27:14.700 --> 00:27:15.700 SPEAKER_11: Okay. 00:27:15.700 --> 00:27:16.700 SPEAKER_08: Thank you. 00:27:16.700 --> 00:27:20.700 SPEAKER_08: Scott, I mean, chances are, right? 00:27:20.700 --> 00:27:26.019 SPEAKER_08: I mean, the energy that we're buying on the market, if it's less expensive than our own 00:27:26.019 --> 00:27:33.339 SPEAKER_08: fleet of thermal plants, it's probably not somebody else's thermal plant, right? 00:27:33.339 --> 00:27:37.500 SPEAKER_08: There's no guarantees there, but our plants are among the most efficient, therefore the 00:27:37.500 --> 00:27:43.220 SPEAKER_08: lease cost, and if we're buying it on the open market, it's probably not a thermal plant. 00:27:43.220 --> 00:27:45.299 SPEAKER_09: Generally speaking, I'd say that's probably true. 00:27:45.299 --> 00:27:48.420 SPEAKER_09: Like Laura was mentioning, it's mostly true in the spring. 00:27:48.420 --> 00:27:53.859 SPEAKER_09: When we have a lot of renewables ramping up and not huge loads in the summer, that's probably 00:27:53.859 --> 00:27:54.859 SPEAKER_09: not so true. 00:27:54.859 --> 00:27:55.859 SPEAKER_09: You're right. 00:27:55.859 --> 00:27:56.859 SPEAKER_09: Or in the fall. 00:27:56.859 --> 00:27:57.859 Unknown: Thank you. 00:27:57.859 --> 00:27:58.859 Unknown: All right. 00:27:58.859 --> 00:28:03.059 Unknown: I don't see any more comment. 00:28:03.059 --> 00:28:05.059 SPEAKER_12: Do we have any public comments? 00:28:05.059 --> 00:28:07.220 Unknown: No, we do not. 00:28:07.819 --> 00:28:08.819 SPEAKER_12: Okay. 00:28:08.819 --> 00:28:09.819 SPEAKER_12: Thank you. 00:28:09.819 --> 00:28:10.819 Unknown: Thank you. 00:28:10.819 --> 00:28:15.100 SPEAKER_12: The last item is, do we have any summary of committee direction? 00:28:15.100 --> 00:28:16.100 SPEAKER_01: Don't have anything, though. 00:28:16.100 --> 00:28:17.100 SPEAKER_12: Okay. 00:28:17.100 --> 00:28:18.100 Unknown: Perfect. 00:28:18.100 --> 00:28:22.660 Unknown: And are there any items, any requests to speak on items on the agenda? 00:28:22.660 --> 00:28:25.059 Unknown: No, there's no hands. 00:28:25.059 --> 00:28:26.059 SPEAKER_01: Okay. 00:28:26.059 --> 00:28:27.059 Unknown: Perfect. 00:28:27.059 --> 00:28:31.259 SPEAKER_12: Then that, the board will now enter into closed session. 00:28:32.259 --> 00:28:38.140 SPEAKER_12: Closed session's agenda is public employment pursuant to section 54.9.57 B1 of the Government 00:28:38.140 --> 00:28:41.779 SPEAKER_12: Code related to employment of the CEO and General Manager. 00:28:41.779 --> 00:28:42.779 SPEAKER_12: Yeah. 00:28:42.779 --> 00:28:44.779 SPEAKER_01: And I don't see any hands for this section either for comment. 00:28:44.779 --> 00:28:45.779 SPEAKER_01: Okay. 00:28:45.779 --> 00:28:46.779 Unknown: No hands. 00:28:46.779 --> 00:28:47.779 Unknown: Okay. 00:28:47.779 --> 00:28:48.779 Unknown: All right. 00:28:48.779 --> 00:28:49.779 SPEAKER_12: And I don't think we're up. 00:28:49.779 --> 00:28:50.779 SPEAKER_12: Will we have action? 00:28:50.779 --> 00:28:51.779 SPEAKER_12: Will we come back? 00:28:51.779 --> 00:28:52.779 SPEAKER_12: Okay. 00:28:52.779 --> 00:28:54.740 SPEAKER_12: The board will not be taking any action during the closed session, so it will be nothing 00:28:54.740 --> 00:28:57.180 SPEAKER_12: to report out at the end of the session. 00:28:57.180 --> 00:28:58.180 SPEAKER_12: All right. 00:28:58.180 --> 00:28:59.339 SPEAKER_12: No further business. 00:28:59.339 --> 00:29:00.859 SPEAKER_12: The board will adjourn to closed session. 00:29:00.859 --> 00:29:01.579 SPEAKER_12: Thanks, all.