WEBVTT 00:00:00.000 --> 00:00:02.000 Unknown: CSgenerpur Corona 00:03:30.000 --> 00:03:31.860 Unknown: responsibility of minorities note 00:03:36.900 --> 00:03:38.800 Unknown: Garcia 00:04:00.000 --> 00:04:02.000 Unknown: Thank you. 00:04:30.000 --> 00:04:32.000 Unknown: Thank you. 00:05:00.000 --> 00:05:02.000 Unknown: Thank you. 00:05:30.000 --> 00:05:32.000 SPEAKER_03: This is the meeting of the public attending in person who wish to speak at this meeting. 00:06:30.000 --> 00:06:38.000 SPEAKER_03: I would like to present the meeting as a discussion of the monitoring report for strategic direction SD6 safety leadership. 00:07:00.000 --> 00:07:02.000 SPEAKER_03: Good evening. 00:07:02.000 --> 00:07:12.000 Unknown: My name is Emily Bikini and I'm the director of safety environmental and real estate services. 00:07:12.000 --> 00:07:20.000 SPEAKER_01: I'm happy to share tonight with you the monitoring report for strategic direction 6 safety leadership for the first two quarters of 2026. 00:07:21.000 --> 00:07:23.000 Unknown: This is our SD6 language. 00:07:23.000 --> 00:07:25.000 SPEAKER_01: It was last updated in April. 00:07:25.000 --> 00:07:31.000 SPEAKER_01: And at that time we updated the timeline and the goal for our workplace safety objective. 00:07:31.000 --> 00:07:44.000 Unknown: We extended the timeline out to 2030 and set the goal to zero severe safety incidents as measured by OSHA's days away restricted time or DART classification. 00:07:44.000 --> 00:07:50.000 SPEAKER_01: We also made a few other editorial changes to the language at that time. 00:07:50.000 --> 00:08:01.000 Unknown: As I just mentioned, our first SD6 objective is to reduce SMUD's injury incidents that result in days away or restricted time to zero by the end of 2030. 00:08:01.000 --> 00:08:09.000 Unknown: To help us meet that goal we set internal targets that reduce year over year and our internal target for 2026 is 11. 00:08:09.000 --> 00:08:17.000 SPEAKER_01: In the first two quarters we had a total of nine OSHA recordable incidents that included five DARTs. 00:08:17.000 --> 00:08:24.000 Unknown: And our DART rate for the year is .44 which is compared to an industry standard of 1.2. 00:08:24.000 --> 00:08:30.000 Unknown: That number captures the number of DART incidents we have as a function of the total number of hours worked. 00:08:30.000 --> 00:08:41.000 SPEAKER_01: The second objective of SD6 is to ensure that our employees receive quality care so that they can return to work if they do happen to be injured. 00:08:41.000 --> 00:08:49.000 SPEAKER_01: Our safety team partners with the integrated disability management team to ensure that that quality care is provided should an injury occur. 00:08:49.000 --> 00:08:56.000 Unknown: We continue to see a reduction in our workers' compensation costs over the past five years as presented on this table. 00:08:57.000 --> 00:09:10.000 SPEAKER_01: While the number of claims and injury frequency have increased slightly, our rates are cost for workers' compensation per $100 of payroll has decreased. 00:09:10.000 --> 00:09:20.000 Unknown: This points to a variety of factors including that the injuries our employees experience are reducing in severity and that they are able to return to work sooner after an incident. 00:09:21.000 --> 00:09:29.000 SPEAKER_01: The data on this table was received last September, September 2025 for the period that covered July 2024 through June 2025. 00:09:29.000 --> 00:09:36.000 SPEAKER_01: And I'll be able to share the results of the report we received a few weeks ago in my next presentation in February. 00:09:39.000 --> 00:09:43.000 Unknown: Another objective of SD6 is our contractor safety. 00:09:43.000 --> 00:09:49.000 SPEAKER_01: We want to support those contractors to reduce and eliminate potential hazards when they're conducting high risk work. 00:09:50.000 --> 00:09:57.000 SPEAKER_01: We continue to use the international supplier net world to evaluate safety records and performance of high risk contractors. 00:09:57.000 --> 00:10:09.000 SPEAKER_01: This evaluation focuses on contractor fatality history, OSHA citation history, DART and total recordable incident rates, safety culture questions, and safety program review. 00:10:09.000 --> 00:10:14.000 SPEAKER_01: We currently have 189 contractors in the ISN system. 00:10:15.000 --> 00:10:24.000 Unknown: We conduct mini site visits, safety audits for our high risk contractors to validate their performance on our job sites. 00:10:24.000 --> 00:10:32.000 SPEAKER_01: Year to date we've conducted 324 visits, which puts us on track to exceed our goal of 500 visits for 2026. 00:10:33.000 --> 00:10:44.000 Unknown: These visits focus on contractors that work with our power generation, line, substation, facilities, vegetation management, and environmental services team. 00:10:44.000 --> 00:10:51.000 SPEAKER_01: Again, working on projects where high risk work is performed, including high voltage work and working at heights. 00:10:54.000 --> 00:10:58.000 Unknown: The last two SD6 objectives are in support of public and community safety. 00:10:59.000 --> 00:11:08.000 SPEAKER_01: We focus on tracking public incidents and injuries that result from our operations and facilities and seek to find measures to protect the public from such incidents. 00:11:09.000 --> 00:11:13.000 SPEAKER_01: Our public safety team has been able to attend many safety events in the community. 00:11:13.000 --> 00:11:25.000 Unknown: And we had a great event earlier this year where we teamed with the Sacramento City Fire Department and they were able to tour some of our underground, I'm sorry, downtown network vaults. 00:11:26.000 --> 00:11:39.000 Unknown: And then we also prepare materials for first responders that's available on our SMUDsafety.com website, including information on how to respond to fires caused by lithium ion batteries. 00:11:41.000 --> 00:11:50.000 Unknown: We do track our public and community incidents, including asset collisions, electrical contacts, dig-ins and injuries that result from those incidents. 00:11:51.000 --> 00:11:59.000 SPEAKER_01: In the first two quarters, there were 124 vehicle versus asset incidents where a member of the public struck one of our facilities. 00:12:00.000 --> 00:12:05.000 SPEAKER_01: Last time I was here, additional information was requested around those incidents. 00:12:05.000 --> 00:12:08.000 SPEAKER_01: About 25% of our incidents are hit and run. 00:12:08.000 --> 00:12:10.000 SPEAKER_01: We don't have any data on them. 00:12:11.000 --> 00:12:24.000 Unknown: Of the remaining 75%, the two largest categories are impacted driving or driving under the influence, I'm sorry, impaired driving or driving under the influence, and speed or loss of vehicle control. 00:12:24.000 --> 00:12:29.000 SPEAKER_01: Twice as many of the drivers are male and about a quarter of them are under 30. 00:12:30.000 --> 00:12:35.000 Unknown: We had six electrical contacts reported and four injuries resulting from those contacts. 00:12:36.000 --> 00:12:39.000 SPEAKER_01: And there were 34 dig-in incidents with no reported injuries. 00:12:40.000 --> 00:12:53.000 SPEAKER_01: In response to those dig-ins, we do send out notifications to the contractors or customers responsible for those incidents to help provide increased awareness and education and prevent those events from reoccurring in the future. 00:12:56.000 --> 00:12:58.000 SPEAKER_01: And then my last slide here is our safety for life slide. 00:12:59.000 --> 00:13:02.000 SPEAKER_01: A lot of programs and a lot of the effort the teams undertake. 00:13:02.000 --> 00:13:09.000 SPEAKER_01: I'm not going to read through all of these items here, but I do want to focus on two of them, one being our vehicle safety program. 00:13:10.000 --> 00:13:17.000 SPEAKER_01: This year we started off the year with six preventable vehicle accidents or PVAs, which is a higher rate than what we typically see. 00:13:18.000 --> 00:13:31.000 Unknown: A PVA committee was formed coming out of our joint labor and management meetings to review the data to identify trends and share that information back out with teams during safety meetings or in safety alerts. 00:13:32.000 --> 00:13:39.000 Unknown: And through these efforts we were able to see a reduction in PVAs that has continued through the rest of the year. 00:13:40.000 --> 00:13:44.000 Unknown: The second item I want to speak to are supervisor-employee interactions. 00:13:45.000 --> 00:13:47.000 SPEAKER_01: This is another metric that we track internally. 00:13:48.000 --> 00:13:55.000 SPEAKER_01: We know that interactions employees have with their leaders are the most impactful, and so it's important that our leaders have targeted conversations. 00:13:56.000 --> 00:14:07.000 SPEAKER_01: They're able to address topics like ergonomics, slip, trip, and fall hazards, personal protective equipment, and situational awareness risks. 00:14:08.000 --> 00:14:17.000 Unknown: They also have eyes-on work conversations that helps our leaders identify hazards early, reinforce safe behaviors, and prevent incidents. 00:14:18.000 --> 00:14:25.000 Unknown: The interactions can also include safety for life topics like ladder use and having your vehicle prepared for the changing weather. 00:14:26.000 --> 00:14:33.000 Unknown: Through proactive measures and meaningful conversations, SMUD continues to build a strong safety culture across our organization. 00:14:34.000 --> 00:14:39.000 SPEAKER_01: And with that, I'd like to request that the board accept the SD6 monitoring report for the first half of 2026. 00:14:42.000 --> 00:14:43.000 Unknown: Any questions? 00:14:44.000 --> 00:14:46.000 Unknown: Any questions or comments? 00:14:49.000 --> 00:14:56.000 SPEAKER_03: My only comment, the question, commentary request that I ask every year is on the SCORCH program. 00:14:57.000 --> 00:14:58.000 SPEAKER_03: Yes. 00:14:58.000 --> 00:14:59.000 SPEAKER_03: And how's that gone in the last year? 00:15:00.000 --> 00:15:02.000 SPEAKER_01: The SCORCH program continues to be very successful. 00:15:03.000 --> 00:15:13.000 SPEAKER_01: In the first half of the year, we had over 3,000 observations completed, both with our field forces and in our office program. 00:15:13.000 --> 00:15:38.000 Unknown: I was wondering if we do anything to enhance safety for our customers that have like med rate, where they have machines that are particularly important for their wellbeing, 00:15:38.000 --> 00:15:57.000 SPEAKER_05: making sure that if there's going to be either planned or unplanned shut off, that we know who's on that circuit and we go an extra mile to really ensure their safety or enhance their safety. 00:15:58.000 --> 00:16:05.000 Unknown: That's not something that the safety team participates in, but we could get back to you to see how customers may support that effort. 00:16:09.000 --> 00:16:10.000 Unknown: Thank you. 00:16:12.000 --> 00:16:18.000 SPEAKER_03: My only other comment is that the numbers seem good. The number for 2025 was 12. 00:16:19.000 --> 00:16:23.000 SPEAKER_03: So it's still trending in the right direction. Zero is certainly an aggressive goal. 00:16:25.000 --> 00:16:34.000 SPEAKER_03: But I'm glad to see that. And then where the dollars hit the road is the actual rates we pay and having those be low for workers comp. So it's a good report. 00:16:35.000 --> 00:16:36.000 Unknown: Great. Thank you. 00:16:37.000 --> 00:16:39.000 SPEAKER_03: Is there any public comments? 00:16:41.000 --> 00:16:42.000 Unknown: I don't see any hands now. 00:16:44.000 --> 00:16:48.000 Unknown: Thank you. They all could be that. 00:16:48.000 --> 00:17:03.000 SPEAKER_03: Okay. So item number two is to discuss the monitoring report for strategic direction SD10, which is our innovation report. 00:17:04.000 --> 00:17:14.000 SPEAKER_03: Thank you for the opportunity to present and speak to SD10 tonight. My name is James Frazier. I'm our director of research and development grants and partnerships. 00:17:15.000 --> 00:17:22.000 Unknown: As I jump into the conversation, I want to start with the language around SD10 and what we're targeting with innovation. 00:17:23.000 --> 00:17:35.000 SPEAKER_02: I think it's important to call out here that SD10 does highlight the importance of research and development and the investment in that for moving us in the direction that we're trying to go and obtaining those long-term goals and the importance of that investment to our community. 00:17:36.000 --> 00:17:50.000 SPEAKER_02: But before I jump in and start talking about the project highlights and the statistics for this particular SD, I think it's important to highlight that while research and development is called out here, innovation is really cross-cutting across the organization. 00:17:51.000 --> 00:18:04.000 SPEAKER_02: And it's built into the culture. And we see it in all different areas. I always appreciate the safety presentation that comes prior to this presentation because you can pick out those different areas of innovation where we're building that in, where we're thinking about that for the future. 00:18:05.000 --> 00:18:16.000 SPEAKER_02: And the first three years ago, we first built our lithium battery at the hedge facility. That battery has continued to be a test bed for how we incorporate lithium battery energy storage into our systems. 00:18:17.000 --> 00:18:28.000 SPEAKER_02: And seeing a bullet on the safety presentation, talking about how we're thinking about the fire preparedness and the emergency response strategies for those lithium batteries, it starts with that research and development that we did, that innovation. 00:18:28.000 --> 00:18:31.000 SPEAKER_02: that innovation and it becomes an operationalized solution. 00:18:31.000 --> 00:18:32.920 SPEAKER_02: None of the things that we talk about in innovation 00:18:32.920 --> 00:18:34.660 SPEAKER_02: happen without the rest of the organization 00:18:34.660 --> 00:18:36.400 SPEAKER_02: leaning into this conversation. 00:18:36.400 --> 00:18:39.099 SPEAKER_02: And that culture is embedded through all of the topics 00:18:39.099 --> 00:18:40.619 SPEAKER_02: and projects that I have the opportunity 00:18:40.619 --> 00:18:42.839 SPEAKER_02: to talk about this evening. 00:18:42.839 --> 00:18:45.740 SPEAKER_02: Thinking about that from an overall project trend, 00:18:45.740 --> 00:18:48.220 SPEAKER_02: we look at where we've been over the last couple years 00:18:48.220 --> 00:18:51.779 SPEAKER_02: and this is a trend that I'm really excited about. 00:18:51.779 --> 00:18:53.839 SPEAKER_02: Previously, as we came out of COVID, 00:18:53.839 --> 00:18:55.700 SPEAKER_02: we saw a declining number of projects 00:18:55.700 --> 00:18:58.700 SPEAKER_02: coming from our research and development areas. 00:18:58.700 --> 00:19:01.259 SPEAKER_02: A lot of that was driven by those changes. 00:19:01.259 --> 00:19:03.400 SPEAKER_02: But when we look at the trends that we've established 00:19:03.400 --> 00:19:04.360 SPEAKER_02: over the last three years, 00:19:04.360 --> 00:19:06.559 SPEAKER_02: we see a growing number of projects 00:19:06.559 --> 00:19:10.240 SPEAKER_02: and an increased focus on the importance of innovation 00:19:10.240 --> 00:19:13.500 SPEAKER_02: and how we're incorporating that across the organization. 00:19:13.500 --> 00:19:16.460 SPEAKER_02: Projecting that forward, we can also see 00:19:16.460 --> 00:19:20.360 SPEAKER_02: that the budget has increased in terms of the spend 00:19:20.360 --> 00:19:22.539 SPEAKER_02: that we're investing into this space. 00:19:22.539 --> 00:19:26.799 SPEAKER_02: In 25, the reporting period there through 2026. 00:19:26.799 --> 00:19:28.619 SPEAKER_02: An important highlight that I like to call out 00:19:28.619 --> 00:19:31.440 SPEAKER_02: when we look at the amount of money that we're spending 00:19:31.440 --> 00:19:33.220 SPEAKER_02: and the difference between those two years 00:19:33.220 --> 00:19:34.819 SPEAKER_02: is that while we are investing more money 00:19:34.819 --> 00:19:36.379 SPEAKER_02: into research and development, 00:19:36.379 --> 00:19:41.379 SPEAKER_02: while innovation is growing in terms of the priority there, 00:19:41.819 --> 00:19:45.019 SPEAKER_02: the actual increase in the dollars between 25 and 26 00:19:45.019 --> 00:19:47.799 SPEAKER_02: was funded through grants and external funding 00:19:47.799 --> 00:19:50.279 SPEAKER_02: that we're able to secure to advance these initiatives. 00:19:50.279 --> 00:19:52.460 SPEAKER_02: So the things that we're doing in our leadership position 00:19:53.259 --> 00:19:54.579 SPEAKER_02: in this space is really giving us the opportunity 00:19:54.579 --> 00:19:56.220 SPEAKER_02: to bring in external funding, 00:19:56.220 --> 00:19:57.840 SPEAKER_02: which we'll be able to talk about momentarily 00:19:57.840 --> 00:20:00.620 SPEAKER_02: when I get to SD19, my next presentation. 00:20:00.620 --> 00:20:02.340 SPEAKER_02: But that external funding is allowing us 00:20:02.340 --> 00:20:03.680 SPEAKER_02: to continue to reach further, 00:20:03.680 --> 00:20:05.220 SPEAKER_02: do more with the dollars that we have 00:20:05.220 --> 00:20:07.319 SPEAKER_02: and accelerate the things that are necessary for us 00:20:07.319 --> 00:20:09.240 SPEAKER_02: to achieve our long-term goals. 00:20:09.240 --> 00:20:11.400 SPEAKER_02: On the right side of the chart here, 00:20:11.400 --> 00:20:13.940 SPEAKER_02: we have a breakdown of what our portfolio looks like. 00:20:13.940 --> 00:20:15.759 SPEAKER_02: We heard earlier this year about the importance 00:20:15.759 --> 00:20:17.279 SPEAKER_02: of transportation electrification 00:20:17.279 --> 00:20:19.360 SPEAKER_02: on our overall decarbonization journey. 00:20:19.359 --> 00:20:22.539 SPEAKER_02: And for me, that's reflected in our research portfolio 00:20:22.539 --> 00:20:23.759 SPEAKER_02: and something that I'm excited about 00:20:23.759 --> 00:20:25.699 SPEAKER_02: that 38% of that portfolio 00:20:25.699 --> 00:20:28.159 SPEAKER_02: is focused on transportation electrification, 00:20:28.159 --> 00:20:30.579 SPEAKER_02: managed EV charging, charging solutions, 00:20:30.579 --> 00:20:31.979 SPEAKER_02: vehicle-to-grid technologies 00:20:31.979 --> 00:20:34.099 SPEAKER_02: that we're looking forward to in the future. 00:20:34.099 --> 00:20:36.339 SPEAKER_02: We also have a strong balance of research 00:20:36.339 --> 00:20:38.059 SPEAKER_02: across other topic areas. 00:20:38.059 --> 00:20:40.259 SPEAKER_02: Core research in the upper right-hand corner here 00:20:40.259 --> 00:20:43.219 SPEAKER_02: incorporates a lot of our longer-range research, 00:20:43.219 --> 00:20:45.659 SPEAKER_02: the work that we do with EPRI, external labs, 00:20:45.659 --> 00:20:47.659 SPEAKER_02: and other advisory groups. 00:20:47.800 --> 00:20:50.320 SPEAKER_02: It also represents our investment into the industry 00:20:50.320 --> 00:20:52.600 SPEAKER_02: and where we participate in events 00:20:52.600 --> 00:20:54.519 SPEAKER_02: or working groups with other utilities 00:20:54.519 --> 00:20:56.960 SPEAKER_02: and bring that knowledge back to SMUD 00:20:56.960 --> 00:20:58.660 SPEAKER_02: and making sure that we're benefiting 00:20:58.660 --> 00:21:00.920 SPEAKER_02: from the work that others are doing as well. 00:21:00.920 --> 00:21:03.840 SPEAKER_02: So we have a very nice balanced portfolio. 00:21:03.840 --> 00:21:05.040 SPEAKER_02: Building electrification, 00:21:05.040 --> 00:21:07.000 SPEAKER_02: being the smallest slice of that pie, 00:21:07.000 --> 00:21:08.500 SPEAKER_02: significant number of those technologies 00:21:08.500 --> 00:21:09.840 SPEAKER_02: are more established. 00:21:09.840 --> 00:21:12.720 SPEAKER_02: And so where we see the fast-moving innovation, 00:21:12.720 --> 00:21:16.120 SPEAKER_02: things like electrification, transportation, 00:21:16.119 --> 00:21:17.379 SPEAKER_02: that's where we see the lion's share 00:21:17.379 --> 00:21:18.579 SPEAKER_02: of our investment going. 00:21:20.179 --> 00:21:22.779 SPEAKER_02: Jumping down, I do wanna take a little bit of time 00:21:22.779 --> 00:21:24.859 SPEAKER_02: to talk about some of the portfolio highlights 00:21:24.859 --> 00:21:26.419 SPEAKER_02: for the reporting year. 00:21:26.419 --> 00:21:28.699 SPEAKER_02: This isn't an overall summary of all the work that was done 00:21:28.699 --> 00:21:31.299 SPEAKER_02: and it's not a deep dive into these individual projects, 00:21:31.299 --> 00:21:33.859 SPEAKER_02: but it is some of the work that we're very, very proud of 00:21:33.859 --> 00:21:36.319 SPEAKER_02: having accomplished in this period. 00:21:36.319 --> 00:21:38.779 SPEAKER_02: Starting with the EV ecosystem, 00:21:38.779 --> 00:21:41.579 SPEAKER_02: we have a number of new fast-charging stations 00:21:41.579 --> 00:21:42.979 SPEAKER_02: that are going in place. 00:21:42.980 --> 00:21:46.599 SPEAKER_02: Our public charger network is set to go live in 2027. 00:21:46.599 --> 00:21:48.720 SPEAKER_02: That's an initiative that started with requirements 00:21:48.720 --> 00:21:51.039 SPEAKER_02: and framing from our research and development team 00:21:51.039 --> 00:21:52.299 SPEAKER_02: and now proudly has been handed off 00:21:52.299 --> 00:21:53.980 SPEAKER_02: to the operational side of the business 00:21:53.980 --> 00:21:57.799 SPEAKER_02: to create that as a fully fledged solution. 00:21:57.799 --> 00:22:00.640 SPEAKER_02: And also here in the bottom left-hand corner, 00:22:00.640 --> 00:22:02.160 SPEAKER_02: you see the charging station 00:22:02.160 --> 00:22:03.620 SPEAKER_02: that's being funded by the FAST grant. 00:22:03.620 --> 00:22:06.039 SPEAKER_02: That's actually coming online here at Sac State 00:22:07.240 --> 00:22:08.799 SPEAKER_02: near the end of this year. 00:22:08.799 --> 00:22:11.640 SPEAKER_02: Maybe early next year, but we're hoping end of this year. 00:22:11.640 --> 00:22:14.460 SPEAKER_02: And then as happy and optimistic as that photo is 00:22:14.460 --> 00:22:17.420 SPEAKER_02: and as excited as we are to expand that access, 00:22:17.420 --> 00:22:19.900 SPEAKER_02: we also have a new section of research 00:22:19.900 --> 00:22:22.259 SPEAKER_02: that we're launching into this space 00:22:22.259 --> 00:22:24.259 SPEAKER_02: and that's around vandalism 00:22:24.259 --> 00:22:26.980 SPEAKER_02: and damage mitigation strategies. 00:22:26.980 --> 00:22:29.000 SPEAKER_02: The pictures that you see in the middle here 00:22:29.000 --> 00:22:32.020 SPEAKER_02: are actually from a charge station here in Sacramento 00:22:32.020 --> 00:22:34.259 SPEAKER_02: and they're significantly less uplifting. 00:22:34.259 --> 00:22:37.300 SPEAKER_02: You see a damaged charger handle, you see a shattered screen. 00:22:37.300 --> 00:22:39.200 SPEAKER_02: So we're starting research work around 00:22:39.200 --> 00:22:41.819 SPEAKER_02: the maintenance strategies, the uptime strategies, 00:22:41.819 --> 00:22:44.220 SPEAKER_02: repair strategies and the work that companies are doing 00:22:44.220 --> 00:22:46.259 SPEAKER_02: to make these systems more robust 00:22:46.259 --> 00:22:48.299 SPEAKER_02: against vandalism and damage. 00:22:48.299 --> 00:22:49.779 SPEAKER_02: It's going to be an important investment 00:22:49.779 --> 00:22:52.019 SPEAKER_02: as we see the proliferation of technologies. 00:22:52.019 --> 00:22:57.019 SPEAKER_02: And so as we're operationalizing the deployment of chargers, 00:22:57.059 --> 00:22:58.740 SPEAKER_02: when we think about innovation, technology, 00:22:58.740 --> 00:23:00.019 SPEAKER_02: research and development, 00:23:00.019 --> 00:23:02.259 SPEAKER_02: we're constantly looking at what comes next 00:23:02.259 --> 00:23:05.019 SPEAKER_02: and thinking about what that vandalism strategy looks like 00:23:05.019 --> 00:23:06.720 SPEAKER_02: is part of that conversation. 00:23:07.559 --> 00:23:09.220 SPEAKER_02: On the right side here is our overall 00:23:09.220 --> 00:23:10.420 SPEAKER_02: vehicle to grid solutions. 00:23:10.420 --> 00:23:13.380 SPEAKER_02: This is a large part of our portfolio. 00:23:13.380 --> 00:23:15.360 SPEAKER_02: Originally I had a picture on this slide 00:23:15.360 --> 00:23:17.980 SPEAKER_02: that was focused, that just had a car charging. 00:23:17.980 --> 00:23:20.299 SPEAKER_02: It's hard to see the fact that the charger 00:23:20.299 --> 00:23:22.779 SPEAKER_02: is bi-directional, that energy is moving both ways 00:23:22.779 --> 00:23:24.900 SPEAKER_02: to and from the grid through an image. 00:23:24.900 --> 00:23:26.220 SPEAKER_02: I replaced it with a timeline 00:23:26.220 --> 00:23:27.660 SPEAKER_02: because it feels like it tells the story 00:23:27.660 --> 00:23:29.519 SPEAKER_02: just a little bit better. 00:23:29.519 --> 00:23:32.220 SPEAKER_02: But also that image that's just a normal looking car 00:23:32.220 --> 00:23:33.299 SPEAKER_02: and a normal looking charger 00:23:33.299 --> 00:23:35.680 SPEAKER_02: is why that technology is so exciting. 00:23:36.299 --> 00:23:38.140 SPEAKER_02: At the early stages of the technology, 00:23:38.140 --> 00:23:39.700 SPEAKER_02: we're seeing it evolve. 00:23:39.700 --> 00:23:41.860 SPEAKER_02: We're in this research and testing and modeling phase. 00:23:41.860 --> 00:23:45.900 SPEAKER_02: We see 26 into 27 transitioning into more validation 00:23:45.900 --> 00:23:48.340 SPEAKER_02: and actual demonstration of these technologies, 00:23:48.340 --> 00:23:51.420 SPEAKER_02: 28 representing when we can see technology transfer 00:23:51.420 --> 00:23:53.220 SPEAKER_02: and starting to see larger scale programs 00:23:53.220 --> 00:23:55.920 SPEAKER_02: and the opportunity for large scale contributions 00:23:55.920 --> 00:23:58.299 SPEAKER_02: of this technology to the grid. 00:23:58.299 --> 00:24:00.460 SPEAKER_04: James, I want to ask a question 00:24:00.460 --> 00:24:04.340 SPEAKER_04: about the vandalism prevention. 00:24:04.919 --> 00:24:06.639 SPEAKER_04: You don't ever hear about people, 00:24:06.639 --> 00:24:10.599 SPEAKER_04: maybe not ever, but rarely people vandalizing gas pumps. 00:24:10.599 --> 00:24:13.039 SPEAKER_04: And it's because they're at a gas station. 00:24:13.039 --> 00:24:17.319 SPEAKER_04: There's people, or a mini market or whatever. 00:24:17.319 --> 00:24:20.919 SPEAKER_04: And so many EV chargers are out at the back end 00:24:20.919 --> 00:24:23.839 SPEAKER_04: of a parking lot somewhere or kind of removed. 00:24:23.839 --> 00:24:26.459 SPEAKER_04: And I'm wondering, are we looking at where we place them 00:24:26.459 --> 00:24:29.359 SPEAKER_04: as part of that strategy and trying to put them 00:24:29.359 --> 00:24:31.519 SPEAKER_04: in spaces that are a little bit more active? 00:24:32.500 --> 00:24:35.259 Unknown: So that does become part of that strategy 00:24:35.259 --> 00:24:37.940 SPEAKER_02: and the modeling and adoption also. 00:24:37.940 --> 00:24:39.740 SPEAKER_02: The other thing that we keep in mind, 00:24:39.740 --> 00:24:41.480 SPEAKER_02: and as I'm having these conversations, 00:24:41.480 --> 00:24:42.960 SPEAKER_02: these are very right now conversations 00:24:42.960 --> 00:24:44.539 SPEAKER_02: we're sure outside the reporting period. 00:24:44.539 --> 00:24:46.660 SPEAKER_02: So don't look to read this particular paragraph 00:24:46.660 --> 00:24:48.379 SPEAKER_02: in the actual report. 00:24:48.379 --> 00:24:51.220 SPEAKER_02: But one of the challenges is that people cut the cords 00:24:51.220 --> 00:24:55.339 SPEAKER_02: because they're looking to sell the copper in the cord. 00:24:55.339 --> 00:24:57.259 SPEAKER_02: And so we see technology and innovation 00:24:57.259 --> 00:24:59.740 SPEAKER_02: in companies that are investing in things like 00:24:59.740 --> 00:25:02.160 SPEAKER_02: ink-filled cables inside those cords 00:25:02.160 --> 00:25:05.079 SPEAKER_02: where the ink will dye the copper in the event 00:25:05.079 --> 00:25:07.279 SPEAKER_02: that it's cut or vandalized. 00:25:07.279 --> 00:25:11.440 SPEAKER_02: And then working with the local salvage yards 00:25:11.440 --> 00:25:14.120 SPEAKER_02: or the metal trade and facilities 00:25:14.120 --> 00:25:17.559 SPEAKER_02: to not accept copper that's traded in 00:25:17.559 --> 00:25:21.000 SPEAKER_02: that has the purple dye in this case. 00:25:21.000 --> 00:25:22.920 SPEAKER_02: And that's a really innovative solution 00:25:22.920 --> 00:25:26.240 SPEAKER_02: because if you cut off the financial means 00:25:26.240 --> 00:25:29.740 SPEAKER_02: or incentive for committing the vandalism 00:25:29.740 --> 00:25:31.740 SPEAKER_02: or destroying those systems, 00:25:31.740 --> 00:25:33.120 SPEAKER_02: you start to get in front of some of that. 00:25:33.120 --> 00:25:34.579 SPEAKER_02: And so that's where we're looking at the things 00:25:34.579 --> 00:25:36.980 SPEAKER_02: that we can control, the things that we can influence, 00:25:36.980 --> 00:25:39.740 SPEAKER_02: and making sure that even if it's not something 00:25:39.740 --> 00:25:41.220 SPEAKER_02: that SMUD does directly, 00:25:41.220 --> 00:25:43.400 SPEAKER_02: that we can be that trusted energy advisor 00:25:43.400 --> 00:25:44.940 SPEAKER_02: to those EV charging companies 00:25:44.940 --> 00:25:47.180 SPEAKER_02: that are deploying this technology into our communities. 00:25:47.180 --> 00:25:48.980 SPEAKER_02: And we can help them make that decision 00:25:48.980 --> 00:25:52.160 SPEAKER_02: of this cord is important because this is the type 00:25:52.160 --> 00:25:55.220 SPEAKER_02: of anti-vandalism investment that you need to make. 00:25:55.220 --> 00:25:57.839 SPEAKER_02: The reliability of these EV chargers is critical 00:25:57.839 --> 00:26:00.460 SPEAKER_02: for people to continue to adopt electric vehicles 00:26:00.460 --> 00:26:02.319 SPEAKER_02: at the cadence that we're hoping for 00:26:02.319 --> 00:26:05.079 SPEAKER_02: with respect to our community impact and air quality. 00:26:05.079 --> 00:26:08.400 SPEAKER_02: And especially when we look at the price of gases today. 00:26:08.400 --> 00:26:10.720 SPEAKER_02: So this becomes a very, very important element 00:26:10.720 --> 00:26:13.220 SPEAKER_02: for long-term success and load growth in this space. 00:26:14.440 --> 00:26:18.120 SPEAKER_04: As we're looking to expand our sort of SMUD branded 00:26:18.120 --> 00:26:22.240 SPEAKER_04: EV charging, I mean, what are our criteria 00:26:22.240 --> 00:26:24.440 SPEAKER_04: for where we decide to put them? 00:26:26.039 --> 00:26:28.440 Unknown: So that is a very balanced conversation. 00:26:28.440 --> 00:26:29.839 SPEAKER_02: So on our side. 00:26:29.839 --> 00:26:32.759 SPEAKER_02: And maybe that's a question for our EV team. 00:26:33.759 --> 00:26:36.000 SPEAKER_02: I can answer it very quickly, 00:26:36.000 --> 00:26:40.279 SPEAKER_02: and then I will defer to the larger experts in the space. 00:26:40.279 --> 00:26:43.460 SPEAKER_02: We target a lot of those harder to reach areas 00:26:43.460 --> 00:26:46.720 SPEAKER_02: where ride and drive might have a high level of value. 00:26:46.720 --> 00:26:49.680 SPEAKER_02: Sacramento State did not have a charging station 00:26:49.680 --> 00:26:51.759 SPEAKER_02: of this magnitude of reliability. 00:26:51.759 --> 00:26:54.600 SPEAKER_02: And that represents a high transit hub. 00:26:54.619 --> 00:26:57.779 SPEAKER_02: And so we were able to step in and fill that opportunity. 00:26:57.779 --> 00:26:59.419 SPEAKER_02: Sac State is also a phenomenal partner 00:26:59.419 --> 00:27:01.059 SPEAKER_02: in working with us to bring that online. 00:27:01.059 --> 00:27:02.859 SPEAKER_02: Site selection can be very difficult. 00:27:02.859 --> 00:27:05.500 SPEAKER_02: And having a partner that performs at that level 00:27:05.500 --> 00:27:08.779 SPEAKER_02: and has that level of commitment to the vision is important. 00:27:09.659 --> 00:27:10.500 SPEAKER_04: Thank you. 00:27:12.679 --> 00:27:14.459 SPEAKER_02: Jumping forward, talk a little bit 00:27:14.459 --> 00:27:17.299 SPEAKER_02: about our distributed energy resources. 00:27:17.299 --> 00:27:20.059 SPEAKER_02: In the last year in this reporting period, 00:27:20.059 --> 00:27:23.259 SPEAKER_02: we saw an interesting piece of technology come forward. 00:27:23.619 --> 00:27:25.839 SPEAKER_02: A meter collar that can sit underneath 00:27:25.839 --> 00:27:28.559 SPEAKER_02: the electrical meter that actually allows solar 00:27:28.559 --> 00:27:32.559 SPEAKER_02: to connect more quickly, to be installed at a lower cost 00:27:32.559 --> 00:27:35.279 SPEAKER_02: and reduces the barrier to access 00:27:35.279 --> 00:27:37.720 SPEAKER_02: for renewable energy to our customers. 00:27:37.720 --> 00:27:39.160 SPEAKER_02: This isn't the type of technology 00:27:39.160 --> 00:27:41.839 SPEAKER_02: that had been readily available from utilities 00:27:41.839 --> 00:27:45.400 SPEAKER_02: or the industry until very, very recently. 00:27:45.400 --> 00:27:46.839 SPEAKER_02: We were one of the first utilities 00:27:46.839 --> 00:27:49.039 SPEAKER_02: to ever pilot this technology. 00:27:49.039 --> 00:27:52.039 SPEAKER_02: And we did that as part of our transition 00:27:52.059 --> 00:27:53.339 SPEAKER_02: to our solar and storage rate. 00:27:53.339 --> 00:27:55.940 SPEAKER_02: And it was a very exciting piece of technology. 00:27:55.940 --> 00:27:59.339 SPEAKER_02: Based on that pilot, the industry has largely started 00:27:59.339 --> 00:28:01.599 SPEAKER_02: to adopt this approach because it does genuinely 00:28:01.599 --> 00:28:02.659 SPEAKER_02: save our customers money 00:28:02.659 --> 00:28:04.819 SPEAKER_02: when they're adopting renewable energy. 00:28:04.819 --> 00:28:07.700 SPEAKER_02: And so in anticipation of more of these technologies 00:28:07.700 --> 00:28:10.659 SPEAKER_02: becoming available and being asked to interconnect these, 00:28:10.659 --> 00:28:13.259 SPEAKER_02: we want to make sure that we're prioritizing safety 00:28:13.259 --> 00:28:16.259 SPEAKER_02: along with that affordability side of the conversation. 00:28:16.259 --> 00:28:18.539 SPEAKER_02: So from the innovation and research and development side, 00:28:18.539 --> 00:28:21.059 SPEAKER_02: over the last year, we've developed an evaluation process 00:28:21.079 --> 00:28:23.159 SPEAKER_02: for these technologies where we can engage 00:28:23.159 --> 00:28:25.119 SPEAKER_02: with the manufacturers, we can test 00:28:25.119 --> 00:28:27.619 SPEAKER_02: and validate the technology, we can qualify it 00:28:27.619 --> 00:28:29.659 SPEAKER_02: for interconnection onto our system 00:28:29.659 --> 00:28:32.720 SPEAKER_02: so that we can be part of that renewable energy journey 00:28:32.720 --> 00:28:34.559 SPEAKER_02: that our customers are on as individuals 00:28:34.559 --> 00:28:36.519 SPEAKER_02: and give them all the tools necessary 00:28:36.519 --> 00:28:38.279 SPEAKER_02: to achieve lowest cost in doing that. 00:28:38.279 --> 00:28:39.759 SPEAKER_02: And that's now a standard process 00:28:39.759 --> 00:28:42.359 SPEAKER_02: that we utilize across the organization. 00:28:42.359 --> 00:28:45.960 SPEAKER_02: We've also done significant work to help inform our customers 00:28:45.960 --> 00:28:47.759 SPEAKER_02: on the potential savings of the investments 00:28:47.759 --> 00:28:50.879 SPEAKER_02: in the electrification technologies that they're making. 00:28:50.880 --> 00:28:54.020 SPEAKER_02: And then on the commercial virtual power plant side, 00:28:54.020 --> 00:28:56.100 SPEAKER_02: we've seen huge adoption of batteries 00:28:56.100 --> 00:28:59.660 SPEAKER_02: in the residential sector over the last couple years. 00:28:59.660 --> 00:29:03.060 SPEAKER_02: I think Rachel Wong was here recently 00:29:03.060 --> 00:29:06.580 SPEAKER_02: and talked about 18 to 20 megawatts or so 00:29:06.580 --> 00:29:09.220 SPEAKER_02: that's now enrolled in our virtual power plant program, 00:29:09.220 --> 00:29:11.320 SPEAKER_02: the My Energy Optimizer Partner Plus, 00:29:11.320 --> 00:29:13.340 SPEAKER_02: largely on the residential side. 00:29:13.340 --> 00:29:16.740 SPEAKER_02: But as we see the battery opportunity continuing to grow, 00:29:16.740 --> 00:29:18.700 SPEAKER_02: understanding what that opportunity looks like 00:29:18.700 --> 00:29:19.820 SPEAKER_02: for commercial customers, 00:29:19.819 --> 00:29:21.639 SPEAKER_02: where a commercial customer might have more value 00:29:21.639 --> 00:29:24.960 SPEAKER_02: associated with backup power than just energy arbitrage. 00:29:24.960 --> 00:29:26.399 SPEAKER_02: But when they're making an investment, 00:29:26.399 --> 00:29:28.740 SPEAKER_02: how we can co-utilize that technology 00:29:28.740 --> 00:29:30.200 SPEAKER_02: to create a mutual benefit, 00:29:30.200 --> 00:29:32.960 SPEAKER_02: providing grid reliability, enhancing affordability, 00:29:32.960 --> 00:29:34.879 SPEAKER_02: but also providing that customer the value 00:29:34.879 --> 00:29:36.319 SPEAKER_02: that they're looking for. 00:29:36.319 --> 00:29:38.399 SPEAKER_02: You see that reflected in some of the microgrid work 00:29:38.399 --> 00:29:40.519 SPEAKER_02: that we're doing with our local high schools 00:29:40.519 --> 00:29:41.759 SPEAKER_02: and that's an opportunity 00:29:41.759 --> 00:29:43.879 SPEAKER_02: that we're continuing to build forward. 00:29:43.879 --> 00:29:45.279 SPEAKER_02: And then lastly here on this slide, 00:29:45.279 --> 00:29:46.359 SPEAKER_02: I wanted to touch a little bit 00:29:46.359 --> 00:29:48.359 SPEAKER_02: on the smart panel work that we're doing. 00:29:49.839 --> 00:29:51.679 SPEAKER_02: The graph that you're seeing here 00:29:51.679 --> 00:29:53.000 SPEAKER_02: in the bottom left hand corner, 00:29:53.000 --> 00:29:54.559 SPEAKER_02: in previous years it would have been an image 00:29:54.559 --> 00:29:55.720 SPEAKER_02: of a smart panel. 00:29:55.720 --> 00:29:57.319 SPEAKER_02: This year I'm excited to say 00:29:57.319 --> 00:29:59.079 SPEAKER_02: that we have these units actually deployed. 00:29:59.079 --> 00:30:00.960 SPEAKER_02: We're collecting data from customers 00:30:00.960 --> 00:30:02.679 SPEAKER_02: that are participating in our pilot. 00:30:02.679 --> 00:30:05.159 SPEAKER_02: And this particular data set is from the hours 00:30:05.159 --> 00:30:10.079 SPEAKER_02: of 5.15 to 6.15 in the evening on a customer's actual home. 00:30:10.079 --> 00:30:13.319 SPEAKER_02: That customer got home, turned on all of their appliances 00:30:13.319 --> 00:30:15.119 SPEAKER_02: and with the help of this panel, 00:30:15.119 --> 00:30:17.919 SPEAKER_02: we were actually able to support the curtailment 00:30:17.919 --> 00:30:18.839 SPEAKER_02: of that customer's load, 00:30:18.839 --> 00:30:21.459 SPEAKER_02: mainly their EV charger in this case, 00:30:21.459 --> 00:30:23.859 SPEAKER_02: so that they could operate on a 100 amp panel. 00:30:23.859 --> 00:30:26.699 SPEAKER_02: That was a cost that they avoided in terms of upgrading. 00:30:26.699 --> 00:30:30.059 SPEAKER_02: It was a cost that the grid no longer had to consider 00:30:30.059 --> 00:30:33.419 SPEAKER_02: in terms of customers going from 100 amp to 200 amp panels. 00:30:33.419 --> 00:30:35.679 SPEAKER_02: And it's exciting to see how we can make best use 00:30:35.679 --> 00:30:37.899 SPEAKER_02: of all of the available infrastructure 00:30:37.899 --> 00:30:40.699 SPEAKER_02: to electrify customers and bring them along in this journey 00:30:40.699 --> 00:30:43.839 SPEAKER_02: and how technology can enable that pathway. 00:30:43.839 --> 00:30:45.579 SPEAKER_02: As an engineer, it's always exciting to be able 00:30:45.579 --> 00:30:47.459 SPEAKER_02: to have a slide with a little bit of data 00:30:47.460 --> 00:30:50.460 SPEAKER_02: and information on it rather than just the picture. 00:30:50.460 --> 00:30:52.600 SPEAKER_02: And so I appreciate everyone bearing with me 00:30:52.600 --> 00:30:56.120 SPEAKER_02: as I put that on there instead of just the image. 00:30:56.120 --> 00:30:59.019 SPEAKER_02: Overall, when we talk about distributed energy resources, 00:30:59.019 --> 00:31:02.819 SPEAKER_02: our research focus really is regardless of the topic area 00:31:02.819 --> 00:31:05.660 SPEAKER_02: on the integration and operation of DERs. 00:31:05.660 --> 00:31:08.220 SPEAKER_02: We're not asking the will this residential battery work. 00:31:08.220 --> 00:31:10.460 SPEAKER_02: We know that batteries will charge and discharge. 00:31:10.460 --> 00:31:12.100 SPEAKER_02: We're looking at how does this integrate 00:31:12.100 --> 00:31:13.440 SPEAKER_02: with our grid operation system? 00:31:13.440 --> 00:31:15.100 SPEAKER_02: How does this integrate with our DERMs? 00:31:15.100 --> 00:31:17.400 SPEAKER_02: What is the importance of open standards 00:31:18.220 --> 00:31:20.040 SPEAKER_02: and interoperability to ensure long-term value 00:31:20.040 --> 00:31:21.800 SPEAKER_02: from these resources? 00:31:21.800 --> 00:31:24.280 SPEAKER_02: We're reducing those barriers to electrification. 00:31:24.280 --> 00:31:25.720 SPEAKER_02: We're making sure that our incentives 00:31:25.720 --> 00:31:28.960 SPEAKER_02: and participation payments are properly valued 00:31:28.960 --> 00:31:30.400 SPEAKER_02: so that we're getting that value both 00:31:30.400 --> 00:31:31.720 SPEAKER_02: for the participating customers, 00:31:31.720 --> 00:31:34.720 SPEAKER_02: but also for our community more widely. 00:31:34.720 --> 00:31:37.340 SPEAKER_02: And at the end of the day, making sure that we are ready 00:31:37.340 --> 00:31:39.900 SPEAKER_02: for innovation and new technology because it's necessary 00:31:39.900 --> 00:31:41.300 SPEAKER_02: to get us where we're going. 00:31:43.640 --> 00:31:44.480 SPEAKER_03: Yeah. 00:31:45.480 --> 00:31:47.319 Unknown: I should dangle this slide. 00:31:48.599 --> 00:31:52.660 SPEAKER_03: The bottom blue, right, span drive DT at 32 amps. 00:31:54.279 --> 00:31:57.200 SPEAKER_03: Why don't we see, what is that load? 00:31:57.200 --> 00:32:00.839 SPEAKER_03: The panel itself is not using 32 amps, I assume. 00:32:00.839 --> 00:32:03.779 SPEAKER_02: Oh, span drive is the brand of the EV charger 00:32:03.779 --> 00:32:05.039 SPEAKER_02: in this particular household. 00:32:05.039 --> 00:32:07.240 SPEAKER_03: Okay, that's the EV charger that sits on there. 00:32:07.240 --> 00:32:09.160 SPEAKER_03: Yep, exactly. 00:32:09.160 --> 00:32:13.000 SPEAKER_02: So the EV charger alone is providing that level of load. 00:32:13.640 --> 00:32:16.920 SPEAKER_03: This is showing us that the heat pump was kicked off 00:32:16.920 --> 00:32:19.000 SPEAKER_03: to keep them under their load cap. 00:32:19.000 --> 00:32:22.079 SPEAKER_02: And so the charger stepped down, 00:32:22.079 --> 00:32:23.700 SPEAKER_02: and as the charger stepped down, 00:32:23.700 --> 00:32:25.799 SPEAKER_02: everything above it also shifted down. 00:32:25.799 --> 00:32:28.079 SPEAKER_02: So it gives the appearance of the other loads shifting down, 00:32:28.079 --> 00:32:31.160 SPEAKER_02: but it's actually the total load that shifts down. 00:32:31.160 --> 00:32:33.240 SPEAKER_02: So in this case, it was the EV charger that stepped down. 00:32:33.240 --> 00:32:34.660 SPEAKER_02: Okay, cool. 00:32:37.359 --> 00:32:40.119 SPEAKER_02: And just the point that as we're sitting 00:32:40.319 --> 00:32:43.879 SPEAKER_02: about 75, 80,000 electric vehicles in that range, 00:32:43.879 --> 00:32:47.119 SPEAKER_02: not the exact number, and we think about 1.2 million 00:32:47.119 --> 00:32:50.599 SPEAKER_02: vehicles, light duty vehicles in the Sacramento area today, 00:32:50.599 --> 00:32:54.000 SPEAKER_02: this type of grid integration, this type of control 00:32:54.000 --> 00:32:56.979 SPEAKER_02: becomes critical as we think about the potential benefits 00:32:56.979 --> 00:32:58.799 SPEAKER_02: of load growth, but also as we think about 00:32:58.799 --> 00:33:00.879 SPEAKER_02: how we manage that load growth responsibly. 00:33:00.879 --> 00:33:04.319 SPEAKER_03: I saw a statistic, I think it may have been 00:33:04.319 --> 00:33:08.239 SPEAKER_03: in the NCAA conference, but I'm not sure I picked it up now. 00:33:08.240 --> 00:33:12.720 SPEAKER_03: But it showed on the commercial vehicle fleets, right? 00:33:12.720 --> 00:33:16.359 SPEAKER_03: Like less than half were using charge management, 00:33:16.359 --> 00:33:18.039 SPEAKER_03: which had me sort of dropping my mouth open 00:33:18.039 --> 00:33:19.420 SPEAKER_03: because you weigh over pay. 00:33:20.839 --> 00:33:24.120 SPEAKER_03: If you're paying peak demand rates, charging your truck 00:33:24.120 --> 00:33:25.620 SPEAKER_03: versus load shifting. 00:33:25.620 --> 00:33:29.440 SPEAKER_03: So I definitely think, there's definitely potentially value 00:33:29.440 --> 00:33:33.819 SPEAKER_03: in building it in versus assuming that they're going to 00:33:33.819 --> 00:33:36.720 SPEAKER_03: make behavioral change on their own, right? 00:33:36.720 --> 00:33:39.640 SPEAKER_02: In a couple of slides, I'll talk just a little bit about 00:33:39.640 --> 00:33:43.000 SPEAKER_02: an EPRI project that we've taken on that's helping us 00:33:43.000 --> 00:33:45.360 SPEAKER_02: better forecast that fleet adoption so that we know 00:33:45.360 --> 00:33:48.200 SPEAKER_02: their plans and we can better engage with them to make sure 00:33:48.200 --> 00:33:50.000 SPEAKER_02: that our customers are engaged in those 00:33:50.000 --> 00:33:51.799 SPEAKER_02: load flexibility programs. 00:33:51.799 --> 00:33:52.640 SPEAKER_02: Thank you. 00:33:54.200 --> 00:33:56.400 SPEAKER_02: Robotics at SMUD, this is actually the first time 00:33:56.400 --> 00:33:59.600 SPEAKER_02: that I've had a chance to present to the board 00:33:59.600 --> 00:34:02.759 SPEAKER_02: on one of our newest portfolios in the research 00:34:02.759 --> 00:34:04.799 SPEAKER_02: and innovation space. 00:34:04.799 --> 00:34:06.680 SPEAKER_02: We have several projects now that are centered 00:34:06.680 --> 00:34:08.559 SPEAKER_02: around robotics. 00:34:08.559 --> 00:34:12.440 SPEAKER_02: On the left here, we have a wide area fire detection system 00:34:12.440 --> 00:34:14.320 SPEAKER_02: that we've piloted and tested. 00:34:15.199 --> 00:34:18.659 SPEAKER_02: And that system was first tested again at the hedge facility 00:34:18.659 --> 00:34:22.239 SPEAKER_02: using that hedge battery that creates this continual return 00:34:22.239 --> 00:34:25.300 SPEAKER_02: on investment and value that we're getting. 00:34:25.300 --> 00:34:28.039 SPEAKER_02: The cameras were installed at that location 00:34:28.039 --> 00:34:31.279 SPEAKER_02: so that we could test and monitor those batteries. 00:34:31.279 --> 00:34:33.500 SPEAKER_02: If there was a failure, we would have early detection 00:34:33.539 --> 00:34:35.579 SPEAKER_02: and early notification. 00:34:35.579 --> 00:34:39.500 SPEAKER_02: That pilot was successful and we've since actually been able 00:34:39.500 --> 00:34:41.900 SPEAKER_02: to work with our power generation team to deploy 00:34:41.900 --> 00:34:44.739 SPEAKER_02: those same sensors now across our Rancho Seiko 2 00:34:44.739 --> 00:34:47.300 SPEAKER_02: solar development, enhancing the visibility 00:34:47.300 --> 00:34:49.659 SPEAKER_02: and monitoring capabilities at that site. 00:34:49.659 --> 00:34:51.659 SPEAKER_02: Before I move past this one, I do want to tell a little bit 00:34:51.659 --> 00:34:54.780 SPEAKER_02: of a story about this picture in the bottom left here 00:34:54.780 --> 00:34:58.380 SPEAKER_02: because you see the label on the image that says smoke, 00:34:58.380 --> 00:35:00.340 SPEAKER_02: but it's not coming from our site. 00:35:00.340 --> 00:35:03.219 SPEAKER_02: That's actually an image that the camera captured 00:35:03.259 --> 00:35:06.859 SPEAKER_02: from the field that's adjacent to our battery yard. 00:35:06.859 --> 00:35:09.619 SPEAKER_02: The camera captured that, it notified our operators. 00:35:09.619 --> 00:35:11.739 SPEAKER_02: Our operators were actually able to reach out 00:35:11.739 --> 00:35:14.459 SPEAKER_02: to the fire responders and that was a fire 00:35:14.459 --> 00:35:16.179 SPEAKER_02: that was going to get started, that we were able 00:35:16.179 --> 00:35:20.179 SPEAKER_02: to facilitate the response to and get that fire put out. 00:35:20.179 --> 00:35:22.619 SPEAKER_02: And so it was that system and that engagement 00:35:22.619 --> 00:35:24.500 SPEAKER_02: and that awareness that prevented that brush fire 00:35:24.500 --> 00:35:26.539 SPEAKER_02: from being able to scale. 00:35:26.539 --> 00:35:28.939 SPEAKER_02: And so real world inaction, 00:35:28.939 --> 00:35:31.219 SPEAKER_02: helping keep our community safer. 00:35:31.219 --> 00:35:32.779 SPEAKER_02: And so that's something that we were very, 00:35:32.779 --> 00:35:33.899 SPEAKER_02: very excited about. 00:35:35.059 --> 00:35:37.859 SPEAKER_02: On the right here is our robotics assisted 00:35:37.859 --> 00:35:39.500 SPEAKER_02: substation inspection. 00:35:39.500 --> 00:35:44.500 SPEAKER_02: Astro, our robot dog, is now roaming 57 of our 270 00:35:45.819 --> 00:35:48.980 SPEAKER_02: substations paired with substation inspectors 00:35:48.980 --> 00:35:52.219 SPEAKER_02: to provide additional imaging and thermal inspection. 00:35:52.219 --> 00:35:55.879 SPEAKER_02: And we're now able to ingest that data, 00:35:55.879 --> 00:35:59.099 SPEAKER_02: perform these analyses and make sure that with this 00:35:59.099 --> 00:36:00.939 SPEAKER_02: consistent robotic thermal inspection 00:36:01.579 --> 00:36:03.139 SPEAKER_02: we're detecting as many failures as possible 00:36:03.139 --> 00:36:06.099 SPEAKER_02: and we have opportunities to repair before failure, 00:36:06.099 --> 00:36:10.700 SPEAKER_02: keeping reliability up and affordability in place. 00:36:10.700 --> 00:36:12.740 SPEAKER_02: We're also looking at future pilots 00:36:12.740 --> 00:36:15.860 SPEAKER_02: and potential opportunities for this technology, 00:36:15.860 --> 00:36:19.579 SPEAKER_02: whether there's substation inspection opportunities 00:36:19.579 --> 00:36:21.980 SPEAKER_02: or other infrastructure opportunities. 00:36:21.980 --> 00:36:24.500 SPEAKER_02: And it's an exciting space that's continuing to grow 00:36:24.500 --> 00:36:26.780 SPEAKER_02: and I'm sure this won't be the last time 00:36:26.780 --> 00:36:29.820 SPEAKER_02: that I present on robotics for this particular presentation. 00:36:31.900 --> 00:36:34.139 Unknown: Moving forward to grid innovation, 00:36:34.139 --> 00:36:36.139 SPEAKER_02: this is a little bit broader topic, 00:36:36.139 --> 00:36:39.179 SPEAKER_02: but we're not just thinking about what those technologies 00:36:39.179 --> 00:36:43.059 SPEAKER_02: are at a customer's site or on the distribution system. 00:36:43.059 --> 00:36:45.420 SPEAKER_02: We're also looking at advanced conductors. 00:36:45.420 --> 00:36:47.619 SPEAKER_02: Building new transmission is a challenge 00:36:47.619 --> 00:36:51.320 SPEAKER_02: in any environment, regardless of where you're located. 00:36:51.320 --> 00:36:54.099 SPEAKER_02: Advanced conductors are a technology that we are 00:36:54.099 --> 00:36:55.940 SPEAKER_02: investigating on the research and development side 00:36:55.940 --> 00:36:58.820 SPEAKER_02: to understand how we can utilize new conductors 00:36:58.820 --> 00:37:00.599 SPEAKER_02: or new wires on our transmission lines 00:37:01.239 --> 00:37:02.839 SPEAKER_02: without having to rebuild the infrastructure, 00:37:02.839 --> 00:37:05.759 SPEAKER_02: effectively increasing our load carrying capability 00:37:05.759 --> 00:37:08.559 SPEAKER_02: without having to rebuild those towers. 00:37:08.559 --> 00:37:10.920 SPEAKER_02: Again, making sure that the best available technology 00:37:10.920 --> 00:37:13.799 SPEAKER_02: is part of the solutions that we're planning for long term. 00:37:13.799 --> 00:37:15.980 SPEAKER_02: I've talked a little bit about the MEPI batteries 00:37:15.980 --> 00:37:19.679 SPEAKER_02: or the hedge battery system in the top right corner here. 00:37:19.679 --> 00:37:22.259 SPEAKER_02: I will call out that we continue to have more use cases 00:37:22.259 --> 00:37:24.279 SPEAKER_02: that we're developing on this battery, 00:37:24.279 --> 00:37:27.039 SPEAKER_02: mainly right now looking at grid forming capabilities 00:37:27.039 --> 00:37:29.039 SPEAKER_02: and black start capabilities 00:37:29.039 --> 00:37:31.920 SPEAKER_02: so that we can help bring the system back online 00:37:31.920 --> 00:37:33.320 SPEAKER_02: more quickly in the event of an outage 00:37:33.320 --> 00:37:34.759 SPEAKER_02: and how those batteries can be part 00:37:34.759 --> 00:37:36.759 SPEAKER_02: of our recovery strategies. 00:37:36.759 --> 00:37:40.239 SPEAKER_02: On the bottom here, it wouldn't be an SD10 presentation 00:37:40.239 --> 00:37:41.320 SPEAKER_02: if I didn't have the opportunity 00:37:41.320 --> 00:37:43.360 SPEAKER_02: to talk about carbon farming. 00:37:43.360 --> 00:37:46.900 SPEAKER_02: We continue to invest in these projects 00:37:46.900 --> 00:37:48.800 SPEAKER_02: and monitor the results. 00:37:48.800 --> 00:37:53.440 SPEAKER_02: Happily this year, we've actually seen a significant increase 00:37:53.440 --> 00:37:56.639 SPEAKER_02: in the performance of the system 00:37:56.639 --> 00:38:00.119 SPEAKER_02: and the carbon matter and soil organic testing, 00:38:00.119 --> 00:38:02.599 SPEAKER_02: actually exceeding expectations. 00:38:02.599 --> 00:38:04.759 SPEAKER_02: And so this is something that we continue to monitor. 00:38:04.759 --> 00:38:08.519 SPEAKER_02: Any opportunity that we can have to pair natural carbon capture 00:38:08.519 --> 00:38:11.279 SPEAKER_02: alongside our renewable generation sources 00:38:11.279 --> 00:38:13.639 SPEAKER_02: to amplify our overall impact for the community 00:38:13.639 --> 00:38:15.839 SPEAKER_02: is an opportunity that we're investigating. 00:38:17.319 --> 00:38:21.759 SPEAKER_04: Here's just the grid forming and black start capability 00:38:21.759 --> 00:38:22.599 SPEAKER_04: with the batteries. 00:38:22.599 --> 00:38:25.199 SPEAKER_04: Does that require another device of some kind, 00:38:25.199 --> 00:38:27.039 SPEAKER_04: capacitor or some other, 00:38:27.039 --> 00:38:28.519 SPEAKER_04: or is it just the batteries themselves? 00:38:28.519 --> 00:38:31.119 SPEAKER_02: It is a configuration for the inverters. 00:38:31.119 --> 00:38:34.079 SPEAKER_02: It does require a little bit of additional technology 00:38:34.079 --> 00:38:35.679 SPEAKER_02: and configuration. 00:38:35.679 --> 00:38:39.599 SPEAKER_02: In most cases, it requires an extra battery, 00:38:39.599 --> 00:38:41.679 SPEAKER_02: small battery, not a large battery 00:38:41.679 --> 00:38:46.079 SPEAKER_02: like the actual utility scale energy storage system. 00:38:46.079 --> 00:38:48.480 SPEAKER_02: But you have to have a battery to provide house power 00:38:48.480 --> 00:38:51.359 SPEAKER_02: so that the system can turn on in the first place. 00:38:51.359 --> 00:38:52.679 SPEAKER_02: And so the addition of that battery, 00:38:52.679 --> 00:38:56.199 SPEAKER_02: so basically a backup power unit for the larger container. 00:38:56.199 --> 00:38:58.480 SPEAKER_04: Backup batteries for our batteries. 00:38:58.480 --> 00:39:01.679 SPEAKER_02: Yeah, and so we need to be reliable first and foremost 00:39:01.679 --> 00:39:03.879 SPEAKER_02: so that we can bring that reliability to the community. 00:39:03.879 --> 00:39:06.000 SPEAKER_02: And those redundant solutions help us make sure 00:39:06.000 --> 00:39:07.519 SPEAKER_02: that we're meeting that requirement. 00:39:07.519 --> 00:39:08.359 SPEAKER_04: Thank you. 00:39:13.039 --> 00:39:15.319 SPEAKER_02: I talked a little bit about our core research 00:39:15.319 --> 00:39:16.679 SPEAKER_02: and partnerships here. 00:39:16.679 --> 00:39:19.879 SPEAKER_02: I do want to highlight the opportunity 00:39:19.879 --> 00:39:22.440 SPEAKER_02: that I mentioned on the left here under EPRI. 00:39:22.519 --> 00:39:24.519 SPEAKER_02: The EVs to scale project. 00:39:24.519 --> 00:39:26.720 SPEAKER_02: One of the challenges that was identified 00:39:26.720 --> 00:39:28.400 SPEAKER_02: through our partnership with EPRI 00:39:28.400 --> 00:39:32.200 SPEAKER_02: is that commercial fleet owners and operators 00:39:32.200 --> 00:39:34.599 SPEAKER_02: don't have a good way to communicate their long range 00:39:34.599 --> 00:39:37.400 SPEAKER_02: plans for electrification to utilities. 00:39:37.400 --> 00:39:39.079 SPEAKER_02: On the utility side, it's difficult for us 00:39:39.079 --> 00:39:41.880 SPEAKER_02: to plan for or anticipate things that we don't know. 00:39:41.880 --> 00:39:45.760 SPEAKER_02: And so in partnership with EPRI and our work on their EVs 00:39:45.760 --> 00:39:49.679 SPEAKER_02: to scale project, we've actually worked with them 00:39:49.679 --> 00:39:52.679 SPEAKER_02: to create a portal where these fleet operators can now 00:39:52.679 --> 00:39:56.440 SPEAKER_02: input their fleet plans to help inform our forecasts, 00:39:56.440 --> 00:39:58.559 SPEAKER_02: to help inform our long range planning, 00:39:58.559 --> 00:40:00.440 SPEAKER_02: and to help let us know when we need 00:40:00.440 --> 00:40:02.319 SPEAKER_02: to be engaging with them to making sure 00:40:02.319 --> 00:40:04.839 SPEAKER_02: that they're participating in these load flexibility 00:40:04.839 --> 00:40:05.839 SPEAKER_02: programs. 00:40:05.839 --> 00:40:07.559 SPEAKER_02: Oftentimes, the gap is that they don't 00:40:07.559 --> 00:40:09.799 SPEAKER_02: know that the program exists because they're not 00:40:09.799 --> 00:40:11.679 SPEAKER_02: fully plugged in to the things that we're 00:40:11.679 --> 00:40:12.639 SPEAKER_02: doing every single day. 00:40:12.639 --> 00:40:14.679 SPEAKER_02: It's not their core job. 00:40:14.679 --> 00:40:16.319 SPEAKER_02: So a big part of our effort here is 00:40:16.319 --> 00:40:18.480 SPEAKER_02: making sure it's as easy as possible for them 00:40:18.480 --> 00:40:20.400 SPEAKER_02: to be aware of those opportunities for us 00:40:20.400 --> 00:40:22.960 SPEAKER_02: to engage with them and for them to be 00:40:22.960 --> 00:40:25.519 SPEAKER_02: the benefactor of lowest possible cost planning 00:40:25.519 --> 00:40:29.039 SPEAKER_02: for the electrification journey that they're on. 00:40:29.039 --> 00:40:30.840 SPEAKER_02: Additionally, on the right here, I 00:40:30.840 --> 00:40:34.199 SPEAKER_02: do want to call out that our research and development team 00:40:34.199 --> 00:40:36.079 SPEAKER_02: are leading subject matter experts 00:40:36.079 --> 00:40:38.880 SPEAKER_02: in a number of these areas, but not all areas. 00:40:38.880 --> 00:40:41.960 SPEAKER_02: We participate in utility knowledge forums 00:40:41.960 --> 00:40:45.719 SPEAKER_02: and industry engagement because we're not necessarily 00:40:45.719 --> 00:40:47.079 SPEAKER_02: leaders in every single area, but we 00:40:47.079 --> 00:40:49.079 SPEAKER_02: want to make sure that we're taking advantage of all 00:40:49.079 --> 00:40:52.799 SPEAKER_02: of the leadership opportunities that others are taking on. 00:40:52.799 --> 00:40:55.319 SPEAKER_02: So when other utilities are learning lessons, 00:40:55.319 --> 00:40:57.519 SPEAKER_02: when they're investing in technologies that may or may not 00:40:57.519 --> 00:41:00.759 SPEAKER_02: work, rather than us learning those same lessons, 00:41:00.759 --> 00:41:03.440 SPEAKER_02: reaching out, engaging with our partners and our peers, 00:41:03.440 --> 00:41:04.880 SPEAKER_02: and making sure that we're having 00:41:04.880 --> 00:41:08.199 SPEAKER_02: a journey that's larger than just Sacramento and SMUD, 00:41:08.199 --> 00:41:10.440 SPEAKER_02: and that we're sharing the things that we learn 00:41:10.440 --> 00:41:12.440 SPEAKER_02: and that we're learning from our peers. 00:41:12.440 --> 00:41:14.199 SPEAKER_02: And so that's an important element of research 00:41:14.199 --> 00:41:16.440 SPEAKER_02: and development, as well as we bring that knowledge back 00:41:16.440 --> 00:41:20.920 SPEAKER_02: to Sacramento, our community, and the organization. 00:41:20.920 --> 00:41:23.280 SPEAKER_02: And then one last slide here, because it 00:41:23.280 --> 00:41:28.400 SPEAKER_02: wouldn't be complete without talking about the overall system 00:41:28.400 --> 00:41:30.840 SPEAKER_02: that operates our distribution system. 00:41:30.840 --> 00:41:33.840 SPEAKER_02: This last year, our outage management system 00:41:33.840 --> 00:41:36.960 SPEAKER_02: was updated and deployed on our ADMS. 00:41:36.960 --> 00:41:39.800 SPEAKER_02: We're doing our work with microgrids and our school programs. 00:41:39.800 --> 00:41:41.679 SPEAKER_02: We've had several presentations, and that's 00:41:41.679 --> 00:41:45.760 SPEAKER_02: a project that we're excited to be underway with now. 00:41:45.760 --> 00:41:50.760 SPEAKER_02: Our grid edge intelligence, our smart meters, the GIS accuracy 00:41:50.760 --> 00:41:53.200 SPEAKER_02: and location awareness applications 00:41:53.200 --> 00:41:55.440 SPEAKER_02: were deployed in this year. 00:41:55.440 --> 00:41:57.800 SPEAKER_02: And then in the bottom left-hand corner, 00:41:57.800 --> 00:42:00.680 SPEAKER_02: through our utilization of AI, we've 00:42:00.680 --> 00:42:03.400 SPEAKER_02: now developed over 100 custom models 00:42:03.400 --> 00:42:07.160 SPEAKER_02: to help staff internally be more efficient with their work 00:42:07.160 --> 00:42:09.600 SPEAKER_02: and make sure that we're delivering the value that we 00:42:09.600 --> 00:42:12.840 SPEAKER_02: create in the most effective way possible. 00:42:12.840 --> 00:42:14.240 SPEAKER_02: That's a lot of information. 00:42:14.239 --> 00:42:15.959 SPEAKER_02: And again, just a highlight of the things 00:42:15.959 --> 00:42:18.439 SPEAKER_02: that we do in the innovation space. 00:42:18.439 --> 00:42:20.679 SPEAKER_02: And with that, I'd like to conclude by requesting 00:42:20.679 --> 00:42:23.039 SPEAKER_02: that the board accept the SD10 monitoring report. 00:42:26.359 --> 00:42:28.319 SPEAKER_04: Any questions for the board? 00:42:28.319 --> 00:42:31.359 Unknown: Questions? 00:42:31.359 --> 00:42:35.359 SPEAKER_03: Could you touch a little bit more on the status of our VGI 00:42:35.359 --> 00:42:37.639 SPEAKER_03: initiatives? 00:42:37.639 --> 00:42:41.279 SPEAKER_03: I've heard through the grapevine, the Twin Rivers, 00:42:41.280 --> 00:42:44.040 SPEAKER_03: VGI has had some issues of one point. 00:42:44.040 --> 00:42:45.519 SPEAKER_03: So I guess what's going on with that, 00:42:45.519 --> 00:42:47.519 SPEAKER_03: and then how are we doing with our integration 00:42:47.519 --> 00:42:50.600 SPEAKER_03: into our Derm system and dispatchability? 00:42:50.600 --> 00:42:51.680 SPEAKER_02: Absolutely. 00:42:51.680 --> 00:42:54.240 SPEAKER_02: So on the Twin Rivers side, and I 00:42:54.240 --> 00:42:56.519 SPEAKER_02: want to highlight the importance of interoperability 00:42:56.519 --> 00:42:59.440 SPEAKER_02: as we're looking at these projects, 00:42:59.440 --> 00:43:02.560 SPEAKER_02: the vehicle-to-grid technologies and solutions that are available 00:43:02.560 --> 00:43:06.600 SPEAKER_02: today are not based on large interoperable standards. 00:43:06.600 --> 00:43:09.480 SPEAKER_02: You can't go and buy off the shelf the chargers, 00:43:09.480 --> 00:43:11.639 SPEAKER_02: whether it's the DC fast charger or off the shelf 00:43:11.639 --> 00:43:15.000 SPEAKER_02: the vehicles that are fully compatible for these solutions. 00:43:15.000 --> 00:43:16.800 SPEAKER_02: The technologies are still being developed. 00:43:16.800 --> 00:43:18.719 SPEAKER_02: They're still being evaluated. 00:43:18.719 --> 00:43:22.920 SPEAKER_02: In the Twin Rivers instance, a shift in a manufacturer's 00:43:22.920 --> 00:43:28.119 SPEAKER_02: priority and capability resulted in misalignment of those buses 00:43:28.119 --> 00:43:31.480 SPEAKER_02: and the chargers being able to provide that service. 00:43:31.480 --> 00:43:33.039 SPEAKER_02: We still completed the full modeling 00:43:33.039 --> 00:43:34.960 SPEAKER_02: on the benefit and the potential opportunity. 00:43:34.960 --> 00:43:37.159 SPEAKER_02: And we're working with them, along with other school 00:43:37.159 --> 00:43:40.559 SPEAKER_02: districts, on their fleet electrification plans 00:43:40.559 --> 00:43:43.199 SPEAKER_02: to bring in VGI technology. 00:43:43.199 --> 00:43:45.079 SPEAKER_02: But we're being very cautious not 00:43:45.079 --> 00:43:47.519 SPEAKER_02: to encourage leaning too far forward 00:43:47.519 --> 00:43:50.519 SPEAKER_02: into the actual infrastructure investment or the charger 00:43:50.519 --> 00:43:53.079 SPEAKER_02: investment while we make sure that we're prioritizing 00:43:53.079 --> 00:43:55.319 SPEAKER_02: that interoperability conversation. 00:43:55.319 --> 00:43:57.359 SPEAKER_02: So it's a balanced approach, and we 00:43:57.359 --> 00:44:02.079 SPEAKER_02: expect that the learning from that is not expected. 00:44:02.079 --> 00:44:04.759 SPEAKER_02: The learning from that is actively informing the research 00:44:04.759 --> 00:44:06.319 SPEAKER_02: that we're putting together this year 00:44:06.320 --> 00:44:09.360 SPEAKER_02: as we're transitioning back into small scale demonstrations 00:44:09.360 --> 00:44:12.760 SPEAKER_02: and pilots over the next year. 00:44:12.760 --> 00:44:16.080 SPEAKER_02: It's an opportunity to both protect our customers 00:44:16.080 --> 00:44:18.680 SPEAKER_02: and the investment that they're making while also making sure 00:44:18.680 --> 00:44:22.400 SPEAKER_02: that we are doing the right work to invest in the research. 00:44:22.400 --> 00:44:25.340 SPEAKER_02: On the grid integration side, the work 00:44:25.340 --> 00:44:27.960 SPEAKER_02: is focused right now on the managed charging solution, 00:44:27.960 --> 00:44:30.000 SPEAKER_02: but it'll use those same communication pathways 00:44:30.000 --> 00:44:32.519 SPEAKER_02: and interoperability pathways to transition to V2G 00:44:32.519 --> 00:44:34.120 SPEAKER_02: as the technology is available. 00:44:36.320 --> 00:44:42.600 Unknown: The other thing I can talk down, just in terms 00:44:42.600 --> 00:44:44.600 SPEAKER_03: of the hedge battery and that test bed, 00:44:44.600 --> 00:44:46.800 SPEAKER_03: I assume that we're taking those learnings 00:44:46.800 --> 00:44:48.700 SPEAKER_03: and they're getting implemented in a country 00:44:48.700 --> 00:44:50.360 Unknown: because of those test tiers. 00:44:50.360 --> 00:44:52.400 Unknown: It's not an initiation. 00:44:52.400 --> 00:44:54.680 SPEAKER_02: The procurement that we originally 00:44:54.680 --> 00:44:58.100 SPEAKER_02: did for the hedge battery and the maintenance agreements 00:44:58.100 --> 00:44:59.840 SPEAKER_02: that were subsequently developed were 00:44:59.840 --> 00:45:02.039 SPEAKER_02: the foundation for the procurement strategies 00:45:02.039 --> 00:45:03.320 SPEAKER_02: in those larger scale systems. 00:45:03.320 --> 00:45:06.400 SPEAKER_02: So those learnings have been baked in from day one 00:45:06.400 --> 00:45:09.960 SPEAKER_02: and continue to inform how we scope and define that project. 00:45:09.960 --> 00:45:12.019 SPEAKER_02: That's one of the largest benefits 00:45:12.019 --> 00:45:14.039 SPEAKER_02: that we've received from that project, 00:45:14.039 --> 00:45:16.080 SPEAKER_02: albeit mostly paper. 00:45:16.080 --> 00:45:18.760 SPEAKER_02: But the performance translates into reliability 00:45:18.760 --> 00:45:20.559 SPEAKER_02: and strengthens us in our conversations 00:45:20.559 --> 00:45:21.940 SPEAKER_02: with those larger battery systems. 00:45:21.940 --> 00:45:22.920 SPEAKER_02: Absolutely, yes. 00:45:26.519 --> 00:45:29.880 Unknown: Dr. Morris, I just want to add also on the Joseph Rachel. 00:45:29.880 --> 00:45:32.320 SPEAKER_07: And the team has a multi, so Rachel's team 00:45:32.320 --> 00:45:34.519 SPEAKER_07: is working on a multi-DER, RFP. 00:45:34.519 --> 00:45:36.039 SPEAKER_07: We've got responses in for those. 00:45:36.039 --> 00:45:38.039 SPEAKER_07: And so that'll help with connecting the programs 00:45:38.039 --> 00:45:40.640 SPEAKER_07: into the Durham's application for the operators. 00:45:40.640 --> 00:45:41.140 SPEAKER_07: Thank you. 00:45:44.320 --> 00:45:47.800 SPEAKER_03: Do you have any public comments on this item? 00:45:47.800 --> 00:45:50.240 Unknown: No, we have. 00:45:50.240 --> 00:45:52.200 SPEAKER_03: Don't go far. 00:45:52.200 --> 00:45:54.720 SPEAKER_03: Number three is next. 00:45:54.720 --> 00:45:56.320 SPEAKER_03: All right, so this one, number three 00:45:56.320 --> 00:45:59.559 SPEAKER_03: is a monitoring report for strategic direction 19, 00:45:59.559 --> 00:46:01.800 SPEAKER_03: which is a diversified business. 00:46:02.000 --> 00:46:02.840 SPEAKER_02: Take this away. 00:46:04.000 --> 00:46:04.840 SPEAKER_02: Thank you. 00:46:04.840 --> 00:46:08.400 SPEAKER_02: Once again, I appreciate the opportunity to present. 00:46:08.400 --> 00:46:12.160 SPEAKER_02: There is a lot of consistency and alignment 00:46:12.160 --> 00:46:13.960 SPEAKER_02: between SD10 and SD19. 00:46:13.960 --> 00:46:17.539 SPEAKER_02: So the opportunity to have these conversations side by side 00:46:17.539 --> 00:46:19.400 SPEAKER_02: does create a lot of benefit. 00:46:19.400 --> 00:46:21.800 SPEAKER_02: I'll get a chance to talk about V2G 00:46:21.800 --> 00:46:23.440 SPEAKER_02: a little bit more in this conversation 00:46:23.440 --> 00:46:25.000 SPEAKER_02: and also some of the things that we're doing 00:46:25.000 --> 00:46:26.160 SPEAKER_02: in the battery space. 00:46:27.280 --> 00:46:30.560 SPEAKER_02: Again, for this particular presentation, 00:46:30.559 --> 00:46:31.679 SPEAKER_02: my name is James Frasier, 00:46:31.679 --> 00:46:34.799 SPEAKER_02: Director of Research and Development Grants and Partnerships. 00:46:34.799 --> 00:46:39.360 SPEAKER_02: SD19 is our focus on diversified business 00:46:39.360 --> 00:46:42.039 SPEAKER_02: and really kind of zooming in on how we're generating 00:46:42.039 --> 00:46:43.299 SPEAKER_02: new revenues that contribute 00:46:43.299 --> 00:46:45.360 SPEAKER_02: to our long-term financial health. 00:46:46.400 --> 00:46:49.519 SPEAKER_02: To that end, we organize our conversation around SD19 00:46:49.519 --> 00:46:52.199 SPEAKER_02: into three general categories. 00:46:52.199 --> 00:46:55.519 SPEAKER_02: Revenue services, work that we're doing in exchange 00:46:55.519 --> 00:46:58.679 SPEAKER_02: for payment, technology partnerships, 00:46:58.679 --> 00:47:01.960 SPEAKER_02: largely revenue sharing agreements, joint sale agreements, 00:47:01.960 --> 00:47:04.480 SPEAKER_02: or potentially stock warrant type agreements. 00:47:04.480 --> 00:47:05.879 SPEAKER_02: And then our grants and external funding 00:47:05.879 --> 00:47:09.279 SPEAKER_02: that we use to amplify our work and our investments. 00:47:10.619 --> 00:47:12.519 SPEAKER_02: From a new business development strategy, 00:47:12.519 --> 00:47:14.859 SPEAKER_02: I did want to talk just a little bit 00:47:14.859 --> 00:47:17.000 SPEAKER_02: about our intake process. 00:47:17.000 --> 00:47:18.960 SPEAKER_02: Over the course of any given year, 00:47:18.960 --> 00:47:23.000 SPEAKER_02: we receive a very significant number of opportunities 00:47:23.000 --> 00:47:26.319 SPEAKER_02: and outreach from private sector, from public sector, 00:47:26.519 --> 00:47:29.559 SPEAKER_02: from companies, from interested community members. 00:47:29.559 --> 00:47:32.440 SPEAKER_02: And so we've developed a thoughtful 00:47:32.440 --> 00:47:36.160 SPEAKER_02: and thorough intake process that lets us quickly screen 00:47:36.160 --> 00:47:38.920 SPEAKER_02: those opportunities that are genuine new business 00:47:38.920 --> 00:47:41.400 SPEAKER_02: development opportunities versus opportunities 00:47:41.400 --> 00:47:43.720 SPEAKER_02: for us to be advisors to community members 00:47:43.720 --> 00:47:47.240 SPEAKER_02: or advisors to regional partners. 00:47:47.240 --> 00:47:50.280 SPEAKER_02: And making sure that we're being as effective as possible 00:47:50.280 --> 00:47:52.960 SPEAKER_02: with the time of our team and organization 00:47:52.960 --> 00:47:55.080 SPEAKER_02: and that we're highlighting and accelerating 00:47:55.119 --> 00:47:57.440 SPEAKER_02: those opportunities that have genuine opportunity 00:47:57.440 --> 00:48:00.880 SPEAKER_02: to create new business development relationships. 00:48:00.880 --> 00:48:04.639 SPEAKER_02: We then follow through with a detailed evaluation process 00:48:04.639 --> 00:48:06.559 SPEAKER_02: prior to getting to a point where we would establish 00:48:06.559 --> 00:48:08.639 SPEAKER_02: new partners and then ongoing monitoring 00:48:08.639 --> 00:48:10.279 SPEAKER_02: of those partners. 00:48:10.279 --> 00:48:13.119 SPEAKER_02: In this last year, we had 10 connections 00:48:13.119 --> 00:48:15.880 SPEAKER_02: that made it through that initial intake phase 00:48:15.880 --> 00:48:17.360 SPEAKER_02: to full evaluation. 00:48:17.360 --> 00:48:19.880 SPEAKER_02: And we have five partnerships that we are monitoring 00:48:19.880 --> 00:48:21.759 SPEAKER_02: as part of our ongoing relationships. 00:48:21.759 --> 00:48:24.119 SPEAKER_02: And I'll touch on those shortly. 00:48:24.119 --> 00:48:27.639 SPEAKER_02: Overall, the portfolio revenue for the reporting period here 00:48:27.639 --> 00:48:31.759 SPEAKER_02: was just under $22 million with costs of $16 million 00:48:31.759 --> 00:48:34.279 SPEAKER_02: to support the portfolio. 00:48:34.279 --> 00:48:39.000 SPEAKER_02: Net revenue totaling $5.8 million for the SD19 portfolio. 00:48:40.480 --> 00:48:43.199 SPEAKER_02: Included in that portfolio is our community energy services 00:48:43.199 --> 00:48:44.239 SPEAKER_02: business. 00:48:44.239 --> 00:48:46.319 SPEAKER_02: This is our eighth year, or this reporting year 00:48:46.319 --> 00:48:50.319 SPEAKER_02: was our eighth year in operation with nine of the CCAs 00:48:51.400 --> 00:48:53.000 SPEAKER_02: across California. 00:48:53.000 --> 00:48:55.639 SPEAKER_02: And we are still providing 12 major service offerings 00:48:55.639 --> 00:48:57.119 SPEAKER_02: across those. 00:48:57.119 --> 00:49:02.119 SPEAKER_02: We do see considerable growth, both expansion, mergers, 00:49:02.199 --> 00:49:04.719 SPEAKER_02: and interest in the CCA industry. 00:49:04.719 --> 00:49:07.679 SPEAKER_02: Growing number of service providers as well. 00:49:07.679 --> 00:49:09.639 SPEAKER_02: Number of the conversations with our CCAs 00:49:09.639 --> 00:49:11.280 SPEAKER_02: actually look a lot like the conversations 00:49:11.280 --> 00:49:13.280 SPEAKER_02: with our regional partners and peers. 00:49:13.280 --> 00:49:16.639 SPEAKER_02: Increasing price sensitivity, seeing a lot of challenges 00:49:16.639 --> 00:49:18.119 SPEAKER_02: around affordability. 00:49:18.119 --> 00:49:20.920 SPEAKER_02: And so we're making sure that we're partnering 00:49:20.920 --> 00:49:24.680 SPEAKER_02: with those CCAs to map that path forward. 00:49:26.000 --> 00:49:27.800 SPEAKER_02: On the technology partnership side. 00:49:29.159 --> 00:49:30.000 SPEAKER_02: Oh, please. 00:49:36.440 --> 00:49:40.720 SPEAKER_06: Various elected officials in the last few months. 00:49:40.720 --> 00:49:42.720 SPEAKER_06: And there's been some swirl. 00:49:42.720 --> 00:49:46.320 SPEAKER_06: So can you give a little bit more update as to 00:49:47.320 --> 00:49:49.039 SPEAKER_06: where we are, what we plan to do? 00:49:49.039 --> 00:49:54.039 SPEAKER_06: Because I don't know if our partners quite know 00:49:54.360 --> 00:49:55.199 SPEAKER_06: what our plan is. 00:49:55.199 --> 00:49:56.719 SPEAKER_06: What have we communicated? 00:49:56.719 --> 00:49:59.300 SPEAKER_06: What have we, are going to communicate? 00:50:00.880 --> 00:50:04.039 SPEAKER_06: Because it seems unclear with some of the people 00:50:04.039 --> 00:50:05.559 SPEAKER_06: I've run into. 00:50:05.559 --> 00:50:09.159 SPEAKER_06: And it's a little awkward because we haven't gotten 00:50:09.159 --> 00:50:12.800 SPEAKER_06: very much except an email a few months ago. 00:50:12.800 --> 00:50:16.519 SPEAKER_06: So is there anything publicly available that we can say? 00:50:16.519 --> 00:50:18.880 SPEAKER_06: I did look in my email again to see if there was 00:50:19.599 --> 00:50:22.440 Unknown: an update from, was it August? 00:50:22.440 --> 00:50:24.000 SPEAKER_06: I might have missed it. 00:50:25.039 --> 00:50:29.240 SPEAKER_06: But it seems, I just ran into someone like a week or two 00:50:29.240 --> 00:50:32.400 SPEAKER_06: ago and I just didn't know how to answer 00:50:32.400 --> 00:50:33.519 SPEAKER_02: where we were going. 00:50:34.880 --> 00:50:39.200 SPEAKER_02: So from the community energy services side, 00:50:39.200 --> 00:50:41.720 SPEAKER_02: we're continuing to provide all of the services 00:50:41.720 --> 00:50:46.340 SPEAKER_02: that we provide to our CCA clients with the absolute 00:50:46.340 --> 00:50:48.900 SPEAKER_02: commitment to the level of quality that we provide. 00:50:48.900 --> 00:50:53.420 SPEAKER_02: As we look at the service from an SD19 perspective, 00:50:53.420 --> 00:50:55.980 SPEAKER_02: it's important that we maintain that affordability 00:50:55.980 --> 00:50:58.579 SPEAKER_02: component and that we're being thoughtful about 00:50:58.579 --> 00:51:01.140 SPEAKER_02: the price changes in the industry. 00:51:01.140 --> 00:51:03.620 SPEAKER_02: When we think about what that means for us, 00:51:03.620 --> 00:51:06.620 SPEAKER_02: it really becomes a function of making sure that 00:51:06.620 --> 00:51:08.940 SPEAKER_02: the partnerships that we have in place are helping us 00:51:08.940 --> 00:51:11.740 SPEAKER_02: deliver the lowest possible cost solutions. 00:51:11.740 --> 00:51:14.539 SPEAKER_02: And that we are doing that in a way that is sustainable 00:51:14.579 --> 00:51:16.980 SPEAKER_02: for both our clients and for SMUD. 00:51:16.980 --> 00:51:21.980 SPEAKER_02: We don't have any specific plans right now that are absolute 00:51:22.659 --> 00:51:25.940 SPEAKER_02: as to what that means, but we are working on understanding 00:51:25.940 --> 00:51:28.659 SPEAKER_02: how partners can help us deliver these services 00:51:28.659 --> 00:51:30.099 SPEAKER_02: more effectively. 00:51:30.099 --> 00:51:34.579 SPEAKER_02: And without that, we are subject to the same price increases 00:51:34.579 --> 00:51:39.460 SPEAKER_02: and sensitivity that the larger industry is exposed to. 00:51:39.460 --> 00:51:41.420 SPEAKER_02: It's the same challenges that we see internally 00:51:41.420 --> 00:51:44.219 SPEAKER_02: for SMUD core work as we think about what 00:51:44.539 --> 00:51:47.139 SPEAKER_02: a price in 2026 looks like compared to what that same 00:51:47.139 --> 00:51:49.259 SPEAKER_02: product cost in 2022. 00:51:49.259 --> 00:51:51.699 SPEAKER_02: And so when we think about our long term strategy, 00:51:51.699 --> 00:51:54.059 SPEAKER_02: we're adapting to that new environment and making sure 00:51:54.059 --> 00:51:56.059 SPEAKER_02: that we're making those strong financial decisions 00:51:56.059 --> 00:51:59.259 SPEAKER_02: both for our community, but also to ensure that we have 00:51:59.259 --> 00:52:01.699 SPEAKER_02: good continuity of service and that we're amplifying 00:52:01.699 --> 00:52:06.699 SPEAKER_02: the public power benefit that CCA's provide to California 00:52:06.739 --> 00:52:09.579 SPEAKER_02: as we map these plans forward. 00:52:09.579 --> 00:52:12.099 SPEAKER_06: So a secondary question is I run into people at the time 00:52:12.099 --> 00:52:17.099 SPEAKER_06: that love SMUD that are not currently being served by us. 00:52:17.299 --> 00:52:18.699 SPEAKER_06: And again, I'm not sure. 00:52:18.699 --> 00:52:21.659 SPEAKER_06: Are we looking to expand this business? 00:52:21.659 --> 00:52:24.860 SPEAKER_06: Because again, I don't know what to say because they're like, 00:52:24.860 --> 00:52:29.019 SPEAKER_06: oh, you know, there's such a, and we can't annex anybody 00:52:29.019 --> 00:52:32.460 SPEAKER_06: anywhere, are we looking to just maintain the nine? 00:52:32.460 --> 00:52:34.259 SPEAKER_06: Are we looking to expand? 00:52:34.259 --> 00:52:36.860 SPEAKER_06: Because I know from my understanding from these people 00:52:36.860 --> 00:52:39.779 SPEAKER_06: I've run into, there's RFPs coming out in the next 00:52:39.780 --> 00:52:42.780 SPEAKER_06: six to 12 months and I don't know the status. 00:52:42.780 --> 00:52:46.860 SPEAKER_06: I don't know if we're bidding on them or partnering or what are we, 00:52:46.860 --> 00:52:48.980 SPEAKER_06: so what is our overall strategy? 00:52:48.980 --> 00:52:52.780 SPEAKER_06: Because I know they're hitting soon or have hit or... 00:52:52.780 --> 00:52:57.780 SPEAKER_02: So as of right now, and there was actually a very recent RFP 00:52:59.340 --> 00:53:03.780 SPEAKER_02: that came out, we're not actively responding to those RFPs 00:53:03.780 --> 00:53:05.700 SPEAKER_02: because it's important to us that we understand 00:53:05.700 --> 00:53:07.940 SPEAKER_02: that business model and those long term cost structures 00:53:07.940 --> 00:53:10.139 SPEAKER_02: so that we can have the right level of commitment 00:53:10.139 --> 00:53:12.099 SPEAKER_02: to the service that we provide. 00:53:12.099 --> 00:53:16.820 SPEAKER_02: And so the immediate answer is not actively growing, 00:53:16.820 --> 00:53:19.380 SPEAKER_02: but that is a function of needing to understand 00:53:19.380 --> 00:53:22.019 SPEAKER_02: what that long term business strategy looks like 00:53:22.019 --> 00:53:24.099 SPEAKER_02: and how we can create that sustainable value 00:53:24.099 --> 00:53:26.340 SPEAKER_02: for both us and our clients. 00:53:31.420 --> 00:53:35.900 Unknown: I will call out that the health and strength of the CCA industry 00:53:35.900 --> 00:53:40.180 SPEAKER_02: is significantly important and the work that they do 00:53:40.180 --> 00:53:42.380 SPEAKER_02: in decarbonizing energy across California 00:53:42.380 --> 00:53:47.539 SPEAKER_02: is important to the overall journey that we're collectively on. 00:53:47.539 --> 00:53:50.340 SPEAKER_02: So the sustainability of that industry, 00:53:50.340 --> 00:53:52.099 SPEAKER_02: both from an affordability standpoint 00:53:52.099 --> 00:53:55.300 SPEAKER_02: and a reliable service provider standpoint 00:53:55.300 --> 00:53:56.940 SPEAKER_02: is absolutely critical. 00:53:56.940 --> 00:54:01.940 Unknown: Touching quickly on the other five partners in our portfolio here, 00:54:07.820 --> 00:54:12.820 SPEAKER_02: all of these partners are partners that were in previous reports. 00:54:12.820 --> 00:54:15.940 SPEAKER_02: You will see Emerson as a new name on this list. 00:54:15.940 --> 00:54:18.820 SPEAKER_02: Emerson actually acquired Aspen Tech, 00:54:18.820 --> 00:54:21.300 SPEAKER_02: which had previously acquired OSI. 00:54:21.300 --> 00:54:25.500 SPEAKER_02: So it is a new name, but this is our DERMS delivery partner 00:54:25.500 --> 00:54:26.980 SPEAKER_02: where we focus on co-development 00:54:26.980 --> 00:54:30.539 SPEAKER_02: of distributed energy resource management system applications. 00:54:30.539 --> 00:54:33.659 SPEAKER_02: This is how we are operating those DERs on the grid. 00:54:33.659 --> 00:54:35.980 SPEAKER_02: SMUD being a leader in this industry 00:54:35.980 --> 00:54:38.380 SPEAKER_02: has the opportunity to take those innovations, 00:54:38.380 --> 00:54:40.619 SPEAKER_02: those solutions that are developed here first 00:54:40.619 --> 00:54:41.699 SPEAKER_02: and through this partnership, 00:54:41.699 --> 00:54:44.179 SPEAKER_02: monetize that investment that we've made. 00:54:44.179 --> 00:54:47.059 SPEAKER_02: Similarly with ITRON and SEW, 00:54:47.059 --> 00:54:48.820 SPEAKER_02: we're making those early investments, 00:54:48.820 --> 00:54:50.780 SPEAKER_02: those leadership investments. 00:54:50.780 --> 00:54:53.940 SPEAKER_02: Uplight is the operator of our SMUD Energy Store. 00:54:53.940 --> 00:54:56.940 SPEAKER_02: So as we're supporting electrification for our customers 00:54:56.940 --> 00:54:59.220 SPEAKER_02: and making those devices available to them, 00:54:59.220 --> 00:55:02.019 SPEAKER_02: making sure that some of that benefit is coming back to our community 00:55:02.019 --> 00:55:03.780 SPEAKER_02: through those purchases. 00:55:03.780 --> 00:55:06.380 SPEAKER_02: ESS at the bottom of the list here, 00:55:06.380 --> 00:55:08.900 SPEAKER_02: in 2025, the partnership here concluded. 00:55:08.900 --> 00:55:13.780 SPEAKER_02: This will be the last report that includes them as a listed partner. 00:55:13.780 --> 00:55:19.740 SPEAKER_02: And so that partnership did successfully conclude in 2025. 00:55:19.740 --> 00:55:22.380 SPEAKER_02: Jumping onto the grant side of the conversation, 00:55:22.380 --> 00:55:24.660 SPEAKER_02: we have 12 active grants under management. 00:55:24.660 --> 00:55:27.860 SPEAKER_02: On the left side here, we can see the breakdown of that. 00:55:27.860 --> 00:55:32.140 SPEAKER_02: That represents right at about $240 million worth of project work 00:55:32.140 --> 00:55:34.420 SPEAKER_02: that's enabled by grants. 00:55:34.420 --> 00:55:36.900 SPEAKER_02: For this particular segment, 00:55:36.900 --> 00:55:40.900 SPEAKER_02: roughly $94 million of that is funded directly from grants. 00:55:40.900 --> 00:55:44.500 SPEAKER_02: $145 million is from SMUD. 00:55:44.500 --> 00:55:47.700 SPEAKER_02: This is largely planned work, critical upgrades to our systems, 00:55:47.700 --> 00:55:51.660 SPEAKER_02: thinking about things like infrastructure on our downtown grid. 00:55:51.779 --> 00:55:54.619 SPEAKER_02: And so this is investment and dollars that are offset 00:55:54.619 --> 00:55:56.460 SPEAKER_02: that help us maintain affordability 00:55:56.460 --> 00:55:59.539 SPEAKER_02: and accelerate the impact of the investments that we're making. 00:55:59.539 --> 00:56:01.420 SPEAKER_02: We've had some notable new additions. 00:56:01.420 --> 00:56:05.379 SPEAKER_02: The SARE grant, which is the downtown grid grant that I just mentioned, 00:56:05.379 --> 00:56:07.139 SPEAKER_02: being the largest of those, 00:56:07.139 --> 00:56:12.259 SPEAKER_02: roughly a $25 million award for that particular opportunity. 00:56:12.259 --> 00:56:17.299 SPEAKER_02: And then we also have successfully closed out four grants in this period, 00:56:17.299 --> 00:56:20.259 SPEAKER_02: which is exciting because it's not just did you win the award, 00:56:20.260 --> 00:56:23.500 SPEAKER_02: but also were you able to deliver the work to complete the project 00:56:23.500 --> 00:56:25.300 SPEAKER_02: and successfully close that out. 00:56:25.300 --> 00:56:27.860 SPEAKER_02: Our ability to close out grants is a direct function 00:56:27.860 --> 00:56:31.180 SPEAKER_02: of how good of an investment we are for these funding agencies. 00:56:31.180 --> 00:56:34.500 SPEAKER_02: And so creating this cycle of winning the award, 00:56:34.500 --> 00:56:36.540 SPEAKER_02: delivering the work and closing out the grant 00:56:36.540 --> 00:56:39.780 SPEAKER_02: is exactly the type of track record we're excited to be establishing 00:56:39.780 --> 00:56:42.100 SPEAKER_02: and a point of pride for us. 00:56:44.820 --> 00:56:48.660 SPEAKER_02: Jumping on, we've also had significant advancements and successes 00:56:48.659 --> 00:56:53.099 SPEAKER_02: in the space of advanced manufacturing and regional development. 00:56:53.099 --> 00:56:57.259 SPEAKER_02: As leaders and in the technology space 00:56:57.259 --> 00:57:00.539 SPEAKER_02: and having a strong foundation that is Sacramento, 00:57:00.539 --> 00:57:03.659 SPEAKER_02: one of the opportunities that we've had is to leverage our investment 00:57:03.659 --> 00:57:07.059 SPEAKER_02: into things like battery energy storage and advanced technologies 00:57:07.059 --> 00:57:09.819 SPEAKER_02: to bring companies here into Sacramento. 00:57:09.819 --> 00:57:15.179 SPEAKER_02: We have now established a very real footprint in the energy storage space, 00:57:15.179 --> 00:57:19.059 SPEAKER_02: with Peak Energy opening their doors here in Sacramento earlier this year, 00:57:19.059 --> 00:57:23.500 SPEAKER_02: Cunetic, an additional flywheel battery energy storage company, 00:57:23.500 --> 00:57:25.980 SPEAKER_02: who is opening their facilities here, 00:57:25.980 --> 00:57:30.339 SPEAKER_02: Sparks and Leacap also in the battery space, CalEpic, 00:57:30.339 --> 00:57:34.219 SPEAKER_02: doing advanced technician training and green career training, 00:57:34.219 --> 00:57:40.500 SPEAKER_02: supporting a region-ready workforce to help uplift our community 00:57:40.500 --> 00:57:43.659 SPEAKER_02: and get them into the careers that these businesses offer. 00:57:43.659 --> 00:57:47.500 SPEAKER_02: Thank you to our board for supporting a number of the ribbon cuttings 00:57:47.500 --> 00:57:49.539 SPEAKER_02: and the events associated with these 00:57:49.539 --> 00:57:53.420 SPEAKER_02: and being part of bringing these companies to our community. 00:57:53.420 --> 00:57:57.059 SPEAKER_02: The investment to Cunetic actually came from a board referral, 00:57:57.059 --> 00:58:00.299 SPEAKER_02: and them coming to this region was an opportunity 00:58:00.299 --> 00:58:02.219 SPEAKER_02: that was enabled through that conversation. 00:58:02.219 --> 00:58:04.059 SPEAKER_02: So that's an exciting one to share. 00:58:04.059 --> 00:58:05.980 SPEAKER_02: On the bottom right-hand corner here, 00:58:05.980 --> 00:58:08.739 SPEAKER_02: you will see that there are other emerging opportunities, 00:58:08.739 --> 00:58:12.139 SPEAKER_02: not listing the company names specifically here, 00:58:12.139 --> 00:58:15.099 SPEAKER_02: but we are looking at electric vehicle charging manufacturing 00:58:15.099 --> 00:58:17.299 SPEAKER_02: as an opportunity for the region, 00:58:17.299 --> 00:58:19.299 SPEAKER_02: bringing battery recycling to the region, 00:58:19.299 --> 00:58:22.059 SPEAKER_02: a service that's woefully lacking in California, 00:58:22.059 --> 00:58:24.460 SPEAKER_02: given the amount of electrification both in vehicles 00:58:24.460 --> 00:58:27.139 SPEAKER_02: and residential battery systems that we're seeing, 00:58:27.139 --> 00:58:30.779 SPEAKER_02: and also building on our presence as a semiconductor 00:58:30.779 --> 00:58:34.619 SPEAKER_02: and design and fabrication hub for Northern California. 00:58:38.099 --> 00:58:40.980 Unknown: Diving just a little bit deeper into CalEpic, 00:58:41.619 --> 00:58:43.380 SPEAKER_02: before I talk about CalEpic, 00:58:43.380 --> 00:58:48.579 SPEAKER_02: just a reminder that CalEpic was formerly the California Mobility Center, 00:58:48.579 --> 00:58:52.820 SPEAKER_02: an organization that SMUD helped start in 2019. 00:58:52.820 --> 00:58:54.380 SPEAKER_02: The organization got off to a small start 00:58:54.380 --> 00:58:57.579 SPEAKER_02: because they were quickly hit with COVID, 00:58:57.579 --> 00:59:00.740 SPEAKER_02: and there was challenges moving through that period 00:59:00.740 --> 00:59:05.300 SPEAKER_02: for a company that was trying to grow as a nonprofit into this space. 00:59:05.300 --> 00:59:08.579 SPEAKER_02: In this last year, I'm very excited to report 00:59:08.579 --> 00:59:11.179 SPEAKER_02: that through support from the community, 00:59:11.179 --> 00:59:14.059 SPEAKER_02: through the hard work of SMUD and other regional partners, 00:59:14.059 --> 00:59:17.500 SPEAKER_02: and through grants that have been secured by CalEpic, 00:59:17.500 --> 00:59:19.299 SPEAKER_02: they're now on solid footing 00:59:19.299 --> 00:59:22.619 SPEAKER_02: and providing a very meaningful service to our community. 00:59:22.619 --> 00:59:27.099 SPEAKER_02: They've won over $5 million worth of grants to support this vision. 00:59:27.099 --> 00:59:31.019 SPEAKER_02: They've just recently moved into their new facility at Depot Park, 00:59:31.019 --> 00:59:33.420 SPEAKER_02: which is a 33,000-square-foot facility 00:59:33.420 --> 00:59:35.099 SPEAKER_02: where they're providing green careers training, 00:59:35.099 --> 00:59:37.460 SPEAKER_02: forklift training, job upscaling. 00:59:37.460 --> 00:59:41.940 SPEAKER_02: They're also the main training partner for Rivian 00:59:41.940 --> 00:59:44.579 SPEAKER_02: on their electric vehicle technician program. 00:59:44.579 --> 00:59:47.500 SPEAKER_02: This is a program that Rivian partners with CalEpic 00:59:47.500 --> 00:59:49.900 SPEAKER_02: and provides at that facility. 00:59:49.900 --> 00:59:51.300 SPEAKER_02: It's a 24-week program 00:59:51.300 --> 00:59:54.900 SPEAKER_02: where technicians participate in training and an apprenticeship 00:59:54.900 --> 00:59:58.900 Unknown: to learn how to service Rivian vehicles. 00:59:58.900 --> 01:00:01.539 SPEAKER_02: It's a paid program, and at the end of this program, 01:00:01.539 --> 01:00:04.539 SPEAKER_02: there's a guaranteed job for these technicians to deploy 01:00:04.539 --> 01:00:07.219 SPEAKER_02: and support the growth of the EV maintenance network 01:00:07.219 --> 01:00:08.900 SPEAKER_02: across the entire country, 01:00:08.900 --> 01:00:11.219 SPEAKER_02: happening here in Sacramento because of the work 01:00:11.219 --> 01:00:14.579 SPEAKER_02: that was started in 2019 with California Mobility Center 01:00:14.579 --> 01:00:18.219 SPEAKER_02: and the continued support from the community to make this a success. 01:00:18.219 --> 01:00:20.940 SPEAKER_02: Over 900 people now have been trained, 01:00:20.940 --> 01:00:24.380 SPEAKER_02: and at the bottom here, one of the highlights for me 01:00:24.380 --> 01:00:26.019 SPEAKER_02: is we're talking about the potential impact 01:00:26.019 --> 01:00:29.539 SPEAKER_02: of vehicle-to-grid technology and electric vehicle charging. 01:00:29.539 --> 01:00:32.420 SPEAKER_02: They've been selected as the Charge Yard Grant recipient 01:00:32.420 --> 01:00:34.219 SPEAKER_02: by the California Energy Commission. 01:00:34.219 --> 01:00:38.659 SPEAKER_02: This establishes them as the first EVSE testing center 01:00:38.659 --> 01:00:41.099 SPEAKER_02: for vehicle-to-grid technologies. 01:00:41.099 --> 01:00:43.139 SPEAKER_02: When we talked about the importance of interoperability, 01:00:43.139 --> 01:00:44.859 SPEAKER_02: when we talked about the importance of standards 01:00:44.859 --> 01:00:47.899 SPEAKER_02: and making sure that we're being part of that education 01:00:47.899 --> 01:00:51.939 SPEAKER_02: and advisory service to make good investments into technology 01:00:51.939 --> 01:00:53.339 SPEAKER_02: and to evaluate it, 01:00:53.339 --> 01:00:56.259 SPEAKER_02: one of the things that we've done is helped stand up CalEpic 01:00:56.259 --> 01:00:59.419 SPEAKER_02: to be this standards house, to be this testing facility, 01:00:59.419 --> 01:01:02.539 SPEAKER_02: so that we can bring standard testing to this industry 01:01:02.539 --> 01:01:04.500 SPEAKER_02: and help accelerate the technology. 01:01:04.500 --> 01:01:06.059 SPEAKER_02: It's not just something we need, 01:01:06.059 --> 01:01:09.059 SPEAKER_02: it's something that we've enabled for the entirety of California. 01:01:09.059 --> 01:01:12.380 Unknown: James, I know that they're looking for a location for that, 01:01:12.380 --> 01:01:15.860 SPEAKER_04: and they've actually approached SACRT about one of our light rail stations, 01:01:15.860 --> 01:01:18.139 SPEAKER_04: and it's not going to work there for a variety of reasons, 01:01:18.139 --> 01:01:20.539 SPEAKER_04: but do they have a location for this yet? 01:01:20.539 --> 01:01:25.779 SPEAKER_04: And I think they were interested in some potential smudge property as well. 01:01:25.779 --> 01:01:29.420 Unknown: We are working very hard with them to find locations to fit their needs. 01:01:29.539 --> 01:01:32.940 SPEAKER_02: I would be very open to suggestions for those locations, 01:01:32.940 --> 01:01:34.460 SPEAKER_02: and we are also looking at our own. 01:01:34.460 --> 01:01:37.659 SPEAKER_02: I do not believe that there's a final determination on the site at this time. 01:01:47.780 --> 01:01:51.900 Unknown: With that, I request that the board accept this presentation 01:01:51.900 --> 01:01:54.380 SPEAKER_02: on our SD19 monitoring report. 01:01:54.380 --> 01:01:59.579 Unknown: Is there any board questions or comments? 01:01:59.579 --> 01:02:04.820 SPEAKER_03: James, I have one quick question. 01:02:04.820 --> 01:02:07.619 SPEAKER_03: Remember we had that agreement several years ago with TEPCO, 01:02:07.619 --> 01:02:09.780 SPEAKER_03: the Tokyo Electric. 01:02:09.780 --> 01:02:10.340 SPEAKER_03: What happened? 01:02:10.340 --> 01:02:11.579 SPEAKER_02: What is the status of that? 01:02:11.579 --> 01:02:13.900 SPEAKER_02: So that agreement is still in place. 01:02:13.900 --> 01:02:15.300 SPEAKER_02: We are still sharing learnings. 01:02:15.300 --> 01:02:21.740 SPEAKER_02: That particular agreement was largely focused on the CHADMO charging technology, 01:02:21.740 --> 01:02:24.059 SPEAKER_02: which has not proliferated here in the United States. 01:02:24.699 --> 01:02:29.019 SPEAKER_02: But the grid impact of the vehicle to grid technology remains consistent 01:02:29.019 --> 01:02:31.219 SPEAKER_02: regardless of the charging technology. 01:02:31.219 --> 01:02:34.699 SPEAKER_02: We continue to share information and build on that relationship, 01:02:34.699 --> 01:02:40.019 SPEAKER_02: but the focus on CHADMO kind of shifts the priority of that particular conversation. 01:02:42.019 --> 01:02:42.500 SPEAKER_03: Okay. 01:02:42.500 --> 01:02:46.420 SPEAKER_03: Is there any public comment on this one? 01:02:46.420 --> 01:02:48.099 SPEAKER_00: No, there's not. 01:02:48.099 --> 01:02:48.619 SPEAKER_03: Thank you. 01:02:48.619 --> 01:02:53.940 SPEAKER_03: All right. 01:02:53.940 --> 01:02:58.059 SPEAKER_03: Let's jump to item number four. 01:02:58.059 --> 01:03:02.659 SPEAKER_03: This is the board monitoring of the governance process for GP8, 01:03:02.659 --> 01:03:06.659 SPEAKER_03: board committee principals, GP10, board training, orientation, 01:03:06.659 --> 01:03:12.659 SPEAKER_03: GP12, board compensation benefits, and GP15, board travel and training reimbursement. 01:03:12.659 --> 01:03:14.380 SPEAKER_03: I scrolled through the slides. 01:03:14.380 --> 01:03:16.500 SPEAKER_03: Everything was marked as high. 01:03:16.500 --> 01:03:22.820 SPEAKER_03: There was no board comment. 01:03:22.820 --> 01:03:26.260 SPEAKER_03: Does anybody have any concerns or comments with this? 01:03:31.820 --> 01:03:32.619 SPEAKER_03: I don't see any. 01:03:32.619 --> 01:03:35.340 SPEAKER_03: Should we move on? 01:03:35.340 --> 01:03:37.260 Unknown: Any public comment? 01:03:37.260 --> 01:03:38.179 SPEAKER_00: A public comment. 01:03:38.179 --> 01:03:39.900 SPEAKER_03: Okay. 01:03:39.900 --> 01:03:43.380 SPEAKER_03: Then we'll skip to item number five, which is the board work plan. 01:03:47.500 --> 01:03:49.500 SPEAKER_05: So we went over this pretty recently. 01:03:49.500 --> 01:03:54.860 SPEAKER_05: I'm just going to talk about a few significant highlights of our work plan. 01:03:54.860 --> 01:04:04.019 SPEAKER_05: One is next week we'll be kicking off our IRP process, 01:04:04.019 --> 01:04:08.980 SPEAKER_05: describing what the public process is going to be. 01:04:08.980 --> 01:04:15.340 SPEAKER_05: And then we're going to have a budget preview also next week 01:04:15.340 --> 01:04:21.100 SPEAKER_05: for eventual approval of our budget on December 10th. 01:04:21.100 --> 01:04:28.860 SPEAKER_05: We'll be looking at our carbon sequestration efforts. 01:04:28.860 --> 01:04:33.500 SPEAKER_05: And contrary to what we've been thinking, and this is the biggest change, 01:04:33.500 --> 01:04:44.260 SPEAKER_05: is that we will be starting our conversation about a policy on large loads next month 01:04:44.260 --> 01:04:48.060 SPEAKER_05: rather than waiting for next year. 01:04:48.060 --> 01:04:53.660 SPEAKER_05: So I think look forward to that. 01:04:53.660 --> 01:04:56.620 SPEAKER_05: And that will be, I think, the only thing on the agenda 01:04:56.620 --> 01:05:03.260 SPEAKER_05: because we may get a lot of public interest on that particular item. 01:05:03.260 --> 01:05:09.620 SPEAKER_05: I think hopefully our discussion of that will hopefully tamp down 01:05:09.620 --> 01:05:12.220 SPEAKER_05: some of the anxiety about it. 01:05:12.219 --> 01:05:17.179 SPEAKER_05: Because I know that people are concerned about where we are with that. 01:05:17.179 --> 01:05:25.739 SPEAKER_05: So we are going to have our legislative update with McGuire Whitney on the 18th. 01:05:25.739 --> 01:05:34.459 SPEAKER_05: And then a security presentation, a closed session, I believe, on December 8th. 01:05:34.459 --> 01:05:39.579 SPEAKER_05: And we'll be discussing our... 01:05:39.579 --> 01:05:44.900 SPEAKER_05: Let me make sure I got that right again. 01:05:44.900 --> 01:05:51.179 SPEAKER_05: More discussion about our IRP foundational elements in December. 01:05:51.179 --> 01:05:55.299 SPEAKER_05: And start thinking about what committees you might be interested in. 01:05:55.299 --> 01:06:01.139 SPEAKER_05: We'll be talking about that for next year's committees. 01:06:01.139 --> 01:06:08.380 SPEAKER_05: And then our parking lot, we have community workforce agreements. 01:06:08.380 --> 01:06:13.260 SPEAKER_05: Balcony solar, floating solar, and other solar technologies. 01:06:13.260 --> 01:06:17.579 SPEAKER_05: Any other things that we'd like to have on there? 01:06:17.579 --> 01:06:21.579 SPEAKER_03: I definitely have concerns about the large load policy. 01:06:21.579 --> 01:06:26.380 SPEAKER_03: As long as we start that process next month, I'm okay. 01:06:26.380 --> 01:06:31.980 SPEAKER_03: I just have some concerns about staff inertia and doing things as we always do. 01:06:31.980 --> 01:06:34.260 SPEAKER_03: And then potentially having staff come and say, 01:06:34.260 --> 01:06:35.380 SPEAKER_03: well, we've already done everything. 01:06:35.380 --> 01:06:36.460 SPEAKER_03: We have to approve it now. 01:06:36.460 --> 01:06:43.179 SPEAKER_03: And I don't want to get us into a corner if it's avoidable before we have this policy 01:06:43.179 --> 01:06:44.860 SPEAKER_03: fully thought out and in place. 01:06:44.860 --> 01:06:49.820 SPEAKER_03: So I think we're in a good place based on the discussion we've been having. 01:06:49.820 --> 01:06:52.380 Unknown: Which is my two cents. 01:06:52.380 --> 01:06:53.380 Unknown: Okay. 01:06:53.380 --> 01:06:54.380 Unknown: All right. 01:06:54.380 --> 01:06:57.300 Unknown: Anything else? 01:06:57.300 --> 01:07:02.579 SPEAKER_03: And then just one note, I brought up the budget meeting. 01:07:02.579 --> 01:07:06.460 SPEAKER_03: I decided to not go off to the solar renewable energy conference. 01:07:06.460 --> 01:07:08.900 SPEAKER_03: I'll be here for the budget meeting that night. 01:07:08.900 --> 01:07:10.940 SPEAKER_03: Such as FYI on that. 01:07:10.940 --> 01:07:12.940 SPEAKER_03: We're not touching that. 01:07:12.940 --> 01:07:14.940 Unknown: All right. 01:07:14.940 --> 01:07:17.619 Unknown: That's all I have. 01:07:17.619 --> 01:07:18.619 SPEAKER_03: Okay. 01:07:18.619 --> 01:07:20.980 SPEAKER_03: And then the last item is probably items. 01:07:20.980 --> 01:07:31.500 SPEAKER_03: Is there any public comments on items not on the agenda or anything on the work plan? 01:07:31.500 --> 01:07:33.500 SPEAKER_00: No public comments on items on the agenda. 01:07:33.500 --> 01:07:34.500 Unknown: Okay. 01:07:34.500 --> 01:07:37.500 Unknown: And then we have any comments on the work plan? 01:07:37.500 --> 01:07:39.500 SPEAKER_00: Oh, and no comments on the work plan. 01:07:39.500 --> 01:07:40.500 SPEAKER_03: Okay. 01:07:40.500 --> 01:07:41.500 SPEAKER_03: Thank you. 01:07:41.500 --> 01:07:43.500 SPEAKER_03: And then is there any summary of the committee direction? 01:07:43.500 --> 01:07:47.500 Unknown: Did we create any work? 01:07:47.500 --> 01:07:51.739 Unknown: I think I'd ask for information about. 01:07:51.739 --> 01:07:52.739 SPEAKER_05: Yeah. 01:07:52.739 --> 01:07:53.739 SPEAKER_00: I have that. 01:07:53.739 --> 01:07:55.739 SPEAKER_00: I have that we. 01:07:55.739 --> 01:07:58.940 SPEAKER_00: Staff will update the board on our outreach to our med rate customers related to plan 01:07:58.940 --> 01:07:59.940 SPEAKER_00: power shutoffs. 01:07:59.940 --> 01:08:05.059 SPEAKER_00: I know that we do outreach to our med rate customers before we de-energize something 01:08:05.059 --> 01:08:07.900 SPEAKER_00: that's specifically called out in our wildfire mitigation plan. 01:08:07.900 --> 01:08:12.659 Unknown: I think we also have just a general program for our vulnerable customers regardless of 01:08:12.659 --> 01:08:16.020 SPEAKER_00: where they're on the med rate where they can sign up for additional notice. 01:08:16.020 --> 01:08:19.220 SPEAKER_00: But we'll confirm that and provide more details on that. 01:08:19.220 --> 01:08:20.220 Unknown: Thank you. 01:08:20.220 --> 01:08:21.220 Unknown: Sounds good. 01:08:21.220 --> 01:08:22.220 SPEAKER_03: All right. 01:08:22.220 --> 01:08:28.180 Unknown: And then just a reminder that written comments received on items on the agenda will be added 01:08:28.180 --> 01:08:31.860 SPEAKER_03: to the record if received within two hours after the end of the meeting. 01:08:31.860 --> 01:08:33.860 SPEAKER_03: With that, we will be adjourned. 01:08:33.860 --> 01:08:34.360 SPEAKER_03: Thank you.