WEBVTT 00:00:00.000 --> 00:00:19.199 Unknown: MO 00:03:30.000 --> 00:03:56.639 Unknown: Thank you. 00:03:56.639 --> 00:04:01.439 SPEAKER_08: Welcome to the strategic development committee and special board meeting of October 6, 2026. 00:04:03.199 --> 00:04:07.519 SPEAKER_08: This room is equipped with a safety alarm. If it sounds, please leave in an orderly manner via 00:04:07.519 --> 00:04:11.679 SPEAKER_08: the exits to the lobby or behind the dais. Assemble in front of the building and wait to 00:04:11.679 --> 00:04:16.879 SPEAKER_08: hear the all clear announcement from security before returning. This meeting is being recorded 00:04:16.879 --> 00:04:21.839 SPEAKER_08: and can be accessed on SMUD's website. Please remember to unmute your microphone when speaking 00:04:21.839 --> 00:04:26.639 SPEAKER_08: in order that our virtual attendees can hear you. The microphone will display a green indicator 00:04:26.639 --> 00:04:31.279 SPEAKER_08: light when the mic is on. 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Written comments will not be read into the record but will be provided 00:05:04.319 --> 00:05:09.280 SPEAKER_08: to the board electronically and placed into the record of the meeting if received within two hours 00:05:09.280 --> 00:05:12.639 SPEAKER_08: after the meeting ends. Chief legal officer, please conduct a roll call. 00:05:12.639 --> 00:05:17.039 SPEAKER_08: Here. 00:05:18.800 --> 00:05:25.199 Unknown: Herber. Chair Sanborn. So since we only have one committee member present, 00:05:25.199 --> 00:05:29.439 SPEAKER_04: we'll need to appoint have the president appoint another member to board member to the committee. 00:05:31.039 --> 00:05:35.039 Unknown: Thanks Laura. I'll go ahead and appoint the vice president. 00:05:35.040 --> 00:05:46.080 Unknown: And also present our directors, Rose, Bowie Thompson and present to my. 00:05:46.879 --> 00:05:49.439 Unknown: Thank you, director. For accepting that responsibility. 00:05:50.400 --> 00:05:55.280 SPEAKER_08: Item number one on tonight's agenda is to brief the board on SMUD's recently completed integrated 00:05:55.280 --> 00:06:01.520 SPEAKER_08: distribution resources plan and our presenters include Rachel Huang, our director of distributed 00:06:01.519 --> 00:06:08.000 SPEAKER_08: energy solutions, Michaela Levine, senior managing consultant at energy, environmental and economics 00:06:08.000 --> 00:06:13.919 SPEAKER_08: E3 and Amandeep Singh, director of distribution planning and operations. Rachel. 00:06:17.120 --> 00:06:22.399 Unknown: Great. Good evening, board. And thank you. As director Fishman said, my name is Rachel 00:06:22.399 --> 00:06:26.799 SPEAKER_03: Wong. I'm the director of distributed energy solutions and happy to be talking today about 00:06:26.800 --> 00:06:33.120 SPEAKER_03: our integrated distribution resources plan. So just for some agenda and some place setting, 00:06:33.680 --> 00:06:37.920 SPEAKER_03: tonight I'm going to actually start by giving you a little bit of background and context before we 00:06:37.920 --> 00:06:42.480 SPEAKER_03: dive into the analysis. Michaela from E3 is actually going to go through the integrated 00:06:42.480 --> 00:06:46.879 SPEAKER_03: distribution resource planning analysis with all of you and go through the results. And then 00:06:46.879 --> 00:06:51.680 SPEAKER_03: Amandeep Singh, our director of distribution planning and operations is going to talk about 00:06:51.680 --> 00:06:55.920 Unknown: the considerations as we look at the results as well as some of the efforts that are underway in 00:06:55.920 --> 00:07:04.160 SPEAKER_03: terms of how we're utilizing this information. So before we dive into the analysis, I wanted to 00:07:04.160 --> 00:07:08.879 SPEAKER_03: share some background with regards to integrated distribution resources planning. And E3 is actually 00:07:08.879 --> 00:07:13.200 SPEAKER_03: going to touch upon this as well. In fact, this slide that I put up here I stole from their deck 00:07:13.200 --> 00:07:17.120 SPEAKER_03: so you will actually see it. It's going to be pretty familiar for you. But I just wanted to 00:07:17.120 --> 00:07:22.000 SPEAKER_03: give some SMUD context before we dove in. So first, you know, why do we do an integrated 00:07:22.000 --> 00:07:26.879 SPEAKER_03: distribution resources plan? So we do a lot of planning and analysis, right? Because we want to 00:07:26.879 --> 00:07:31.360 SPEAKER_03: make sure that we're prepared and informed as we think about the investments that we make. And 00:07:31.360 --> 00:07:36.959 SPEAKER_03: while we don't have a crystal ball, the analysis of the potential future DER growth scenarios, 00:07:36.959 --> 00:07:41.439 SPEAKER_03: it actually allows us to proactively prepare for various distribution grid pathways. 00:07:41.439 --> 00:07:48.480 SPEAKER_03: You can see in this graph that the diversity of how each DER impacts our net load profile, 00:07:48.480 --> 00:07:53.040 SPEAKER_03: and where you can see that DERs are not only adding load, but they're also reducing our load 00:07:53.040 --> 00:07:58.080 SPEAKER_03: as well. So as we see that we're getting to scale, the insights from this analysis is really going to 00:07:58.080 --> 00:08:02.720 SPEAKER_03: be important to inform both our programs as well as what we need to think about in terms of 00:08:02.720 --> 00:08:09.120 SPEAKER_03: electrification, infrastructure to support our electrification and grid modernization efforts. 00:08:09.120 --> 00:08:13.680 Unknown: So, you know, we are on the ball. As we think about load growth, as we think about electrification, 00:08:14.240 --> 00:08:18.400 SPEAKER_03: we are doing some of this analysis to help inform our thinking for what investments we need to be 00:08:18.399 --> 00:08:22.639 SPEAKER_03: able to make for the future, and looking at what we can do to optimize those investments to ensure 00:08:22.639 --> 00:08:28.479 SPEAKER_03: that the investments that we make can able to keep our rates affordable. So a caveat, you know, 00:08:28.479 --> 00:08:33.439 SPEAKER_03: this analysis isn't definitive. It's not like, okay, we've got one number and it magically pops up. 00:08:33.439 --> 00:08:37.840 SPEAKER_03: You'll see that we're actually using scenarios in this analysis to provide direction, given we know 00:08:37.840 --> 00:08:42.960 SPEAKER_03: that the state space is dynamic and evolving. And by doing so, it actually helps us address some of 00:08:42.960 --> 00:08:48.960 SPEAKER_03: the uncertainty associated with it because it gives us a range to consider. From a history 00:08:48.960 --> 00:08:55.040 SPEAKER_03: standpoint, this is actually the third time that we've done an IDRP. The last time we did an IDRP 00:08:55.040 --> 00:09:00.720 SPEAKER_03: is actually in 2020, and it was before we actually established the zero carbon plan. You know, a lot 00:09:00.720 --> 00:09:07.120 SPEAKER_03: of things have changed since. However, that work that we did back in 2020 did inform because we 00:09:07.120 --> 00:09:12.080 SPEAKER_03: did some analysis relative to EV load growth. It actually informed and led to our managed EV 00:09:12.160 --> 00:09:16.879 SPEAKER_03: charging pilot program, which we're now in the process of operationalizing to launch next year. 00:09:16.879 --> 00:09:21.440 SPEAKER_03: It also helped to guide some key investments that we made to bring visibility and control to our 00:09:21.440 --> 00:09:25.920 SPEAKER_03: distribution system, including things like our distributed energy resources management system, 00:09:25.920 --> 00:09:33.200 SPEAKER_03: also known as DERMS, to support that increasingly dynamic future distribution system. The other 00:09:33.200 --> 00:09:39.680 SPEAKER_03: thing is that we deliberately timed this IDRP analysis to be conducted ahead of our integrated 00:09:39.679 --> 00:09:44.879 SPEAKER_03: resources planning analysis, which Brian Swan is going to be kicking off with you next week, 00:09:44.879 --> 00:09:51.359 SPEAKER_03: so that this analysis can actually help inform that one. And so for this IDRP, we expect this 00:09:51.359 --> 00:09:56.399 SPEAKER_03: analysis is going to help chart the appropriate course and the level of investment so that we can 00:09:56.399 --> 00:10:02.079 SPEAKER_03: support as well as capitalize upon the benefits from electrification while maintaining reliability 00:10:02.080 --> 00:10:09.600 SPEAKER_03: and resilience. And then finally, before we dive into the analysis, just wanted to give you some 00:10:09.600 --> 00:10:15.840 SPEAKER_03: perspective with regards to implications to our distributed energy resources programs and how they 00:10:15.840 --> 00:10:19.920 SPEAKER_03: can help alleviate some of the investments needed to support electrification. So I don't know if you 00:10:19.920 --> 00:10:24.879 SPEAKER_03: remember several years ago, this was probably as part of our ZCP, but also in some of the presentations 00:10:24.879 --> 00:10:30.800 SPEAKER_03: we've done on our distributed energy resources strategy, I've talked about this concept of the 00:10:30.799 --> 00:10:35.919 SPEAKER_03: value stack, right? That DERs can provide different streams of value and that we can actually 00:10:36.479 --> 00:10:44.000 SPEAKER_03: benefit from multiple streams of value coming from the DERs. But that being said, our DER programs, 00:10:44.000 --> 00:10:48.559 SPEAKER_03: as we've designed them, and as you look at the business case analysis for those programs, 00:10:48.559 --> 00:10:53.919 SPEAKER_03: to date they've been fundamentally leveraging that value derived from the bulk system, 00:10:54.559 --> 00:10:58.240 SPEAKER_03: looking at needs like capacity and energy arbitrage. So that's really been the foundation 00:10:58.320 --> 00:11:04.000 SPEAKER_03: of the financial models for our programs. But looking ahead, we know that as we are evolving 00:11:04.000 --> 00:11:08.879 SPEAKER_03: our energy mix, and that can actually reduce some of our traditional value streams. So in the future, 00:11:08.879 --> 00:11:14.639 SPEAKER_03: we actually need to add additional value for the financials to work. And that's going to come from 00:11:14.639 --> 00:11:20.080 SPEAKER_03: localized distribution level deployments that target specific grid benefits right in our communities. 00:11:20.720 --> 00:11:24.799 Unknown: This evolving resource mix is something that I actually talked about about a month ago when I 00:11:24.799 --> 00:11:30.319 SPEAKER_03: came to you with regards to updates for our zero carbon plan customer programs. I talked about how 00:11:30.319 --> 00:11:37.120 SPEAKER_03: increases in wind and solar within our 2026 power mix actually helped reduce the value of the load 00:11:37.120 --> 00:11:41.599 SPEAKER_03: shift from our commercial power direct program where customers originally were in that three to 00:11:41.599 --> 00:11:46.399 SPEAKER_03: seven window. And we actually saw the value really drop from that. And that really caused us to need 00:11:46.399 --> 00:11:52.079 SPEAKER_03: to extend that window to 9pm in order to really increase the value from that load flexibility. 00:11:52.080 --> 00:11:57.120 SPEAKER_03: So getting that local value right is going to be critical to scale our DER programs in order for 00:11:57.120 --> 00:12:01.920 SPEAKER_03: them to be cost competitive and in order for them to really help us keep our rates affordable. 00:12:03.120 --> 00:12:07.360 Unknown: This also means, though, that there's areas on our distribution grid where it's more valuable to 00:12:07.360 --> 00:12:11.360 SPEAKER_03: invest than others. So that's another consideration we're going to have to have as we think about 00:12:11.360 --> 00:12:16.800 SPEAKER_03: designing our DER programs. So we are working on a number of programs that can help us enable local 00:12:16.800 --> 00:12:21.520 SPEAKER_03: distribution value. As I mentioned, we're operationalizing our managed TV charging program. 00:12:21.519 --> 00:12:26.559 SPEAKER_03: I also talked about in our ZCP customer programs update that we are getting close to launching 00:12:26.559 --> 00:12:32.000 SPEAKER_03: our commercial virtual power plant pilot where we're going to be installing battery storage on 00:12:32.000 --> 00:12:38.000 SPEAKER_03: certain commercial customers' sites behind specific substations to generate that operational data to 00:12:38.000 --> 00:12:42.399 SPEAKER_03: give us more confidence on things like non-RARs alternatives. So the combination of multiple 00:12:42.399 --> 00:12:47.919 SPEAKER_03: benefits to achieve greater value is going to help us drive affordability. But it's also going to 00:12:47.919 --> 00:12:51.519 SPEAKER_03: come with some additional complexity to planning and operations. So it's really going to be 00:12:51.519 --> 00:12:57.519 SPEAKER_03: critical that we take integrated approaches both to our planning as well as thinking about our IT 00:12:57.519 --> 00:13:05.120 SPEAKER_03: systems to support the operation of those resources. So with that, I will hand it over to Michaela from E3. 00:13:11.599 --> 00:13:17.679 Unknown: All right. Hi, I'm Michaela Levine. I'm here from E3 with my colleague, Mike Sontag. Before I begin, 00:13:17.679 --> 00:13:22.559 SPEAKER_00: I just really want to thank all of the SMUD staff that contributed to the development of this 00:13:22.559 --> 00:13:26.879 SPEAKER_00: integrated distribution resources plan. I really want to appreciate all their time, effort, and 00:13:26.879 --> 00:13:31.759 SPEAKER_00: thoughtfulness they put into shaping the outcomes of this study. I'm going to start by just kind of 00:13:31.759 --> 00:13:37.199 SPEAKER_00: building on some of that motivation that Rachel laid out. So a key motivation for doing this 00:13:37.199 --> 00:13:42.639 SPEAKER_00: integrated distribution resource plan, this IDRP, was to advance integrated planning at SMUD. 00:13:43.519 --> 00:13:47.439 Unknown: There are a lot of different flavors of integrated planning out there, and an IDRP is just one of 00:13:47.520 --> 00:13:52.800 SPEAKER_00: them. Integrated planning is a really hot topic in the industry right now. It's a way for utilities 00:13:52.800 --> 00:13:57.920 SPEAKER_00: to really engage in a transparent planning process. Integrated planning is all about breaking 00:13:57.920 --> 00:14:03.840 SPEAKER_00: down the domains of the power system from generation, transmission, distribution, and customer and DR, 00:14:03.840 --> 00:14:09.040 Unknown: and really bridging those silos in planning to think about how investments in one aspect of the 00:14:09.040 --> 00:14:14.880 SPEAKER_00: power system affect others, and how we can do coordinated planning to drive towards lower total 00:14:14.879 --> 00:14:20.000 SPEAKER_00: system cost plans that support other goals of the utility, affordability, reliability, and 00:14:20.000 --> 00:14:27.519 SPEAKER_00: sustainability. So today we're talking about the IDRP, which primarily focus on the intersection 00:14:27.519 --> 00:14:34.799 SPEAKER_00: of customers and distribution, DR and distribution. But the IDRP also acknowledges that DRs have bulk 00:14:34.799 --> 00:14:40.320 SPEAKER_00: system impacts. Bulk system here, I find that I need generation and transmission. So as we go 00:14:40.320 --> 00:14:44.480 SPEAKER_00: through the results, you'll also see how we consider those impacts as well. And as Rachel 00:14:44.480 --> 00:14:48.400 SPEAKER_00: teed up, coming up, the big focus for SMUD is going to be your IRP, and so that's kind of 00:14:48.400 --> 00:14:56.480 SPEAKER_00: focused mostly on the generation side of the planning process. A little bit more of the 00:14:56.480 --> 00:15:00.480 SPEAKER_00: motivation. Coming back to that graph that Rachel showed you all before, a big motivation for this 00:15:00.480 --> 00:15:05.280 SPEAKER_00: study was just the amount of low growth that SMUD's anticipating over the next 15 years. 00:15:05.280 --> 00:15:09.440 SPEAKER_00: The study of being a distribution resources plan really focused on distribution-sided load, 00:15:09.440 --> 00:15:14.160 SPEAKER_00: thinking about all types of DRs that SMUD anticipate getting adopted over the next 15 years. 00:15:14.880 --> 00:15:18.800 SPEAKER_00: A lot of these DRs, including building electrification and transportation electrification, 00:15:18.800 --> 00:15:23.600 SPEAKER_00: are critical to support the state's and SMUD's decarbonization goals. All of that investment 00:15:23.600 --> 00:15:28.400 SPEAKER_00: and load growth is expected to trigger and accelerate the rate at which SMUD needs to invest 00:15:28.400 --> 00:15:33.440 SPEAKER_00: in infrastructure investments. But it's also an opportunity for SMUD to realize some downward 00:15:33.440 --> 00:15:38.400 SPEAKER_00: rate pressure, using all that load growth to increase the utilization of their system assets. 00:15:38.480 --> 00:15:43.919 SPEAKER_00: But this study was really about how to maximize that opportunity, how to create the most downward 00:15:43.919 --> 00:15:48.399 SPEAKER_00: rate pressure possible through electrification, and to do that, SMUD really needs to consider 00:15:48.399 --> 00:15:51.519 SPEAKER_00: how DRs affect both the distribution system and the bulk system. 00:15:56.000 --> 00:16:02.879 SPEAKER_00: A few objectives for the IDRP. The first one was to inform SMUD's capital and staffing strategies. 00:16:02.879 --> 00:16:07.039 SPEAKER_00: With all this electrification, we're expecting the rate at which distribution upgrades 00:16:07.039 --> 00:16:11.199 SPEAKER_00: are needed to support that load growth to increase over the future. And this study was 00:16:11.199 --> 00:16:15.039 SPEAKER_00: to help SMUD inform how they might need to evolve their capital and staffing plans to be able to 00:16:15.039 --> 00:16:20.480 SPEAKER_00: keep up with that pace of upgrade needs. Another key objective of the study was to inform how 00:16:20.480 --> 00:16:25.039 SPEAKER_00: distribution planning practices at SMUD need to evolve to meet this high electrification future 00:16:25.039 --> 00:16:29.519 SPEAKER_00: and the unique demands it's going to bring. A third objective here, and Rachel kind of touched 00:16:29.519 --> 00:16:35.439 SPEAKER_00: on this already, was to inform how DR strategy will evolve at SMUD to think about how to leverage DRs 00:16:35.440 --> 00:16:40.960 SPEAKER_00: as both a bulk and a distribution system asset. And fourth, another key objective of this study 00:16:40.960 --> 00:16:46.400 SPEAKER_00: was to think about how to advance coordinated planning at SMUD across planning groups to yield 00:16:46.400 --> 00:16:51.200 SPEAKER_00: lower total system cost solutions and bring affordability at kind of the forefront of planning. 00:16:55.920 --> 00:16:59.680 SPEAKER_00: I'm going to summarize some key takeaways, and then we have a bunch more detail to kind of 00:16:59.680 --> 00:17:05.360 SPEAKER_00: illustrate all of these key findings in the next few slides. The first key finding of this study 00:17:05.359 --> 00:17:10.639 SPEAKER_00: is that significant load growth is coming to the SMUD system, but we estimate that that is going 00:17:10.639 --> 00:17:16.399 SPEAKER_00: to create downward rate pressure for SMUD. Enabling all that load growth is going to require some 00:17:16.399 --> 00:17:21.439 SPEAKER_00: upfront investment, both in staffing and capital projects. And electrification is expected to 00:17:21.439 --> 00:17:26.799 SPEAKER_00: increase the volume at which SMUD will need to do distribution substation projects by 30 to 60%, 00:17:27.519 --> 00:17:31.759 SPEAKER_00: and that kind of can vary based on the level of load management that SMUD is able to leverage. 00:17:31.759 --> 00:17:38.000 SPEAKER_00: Managed charging, as well as nonwire solutions, can help SMUD really reduce that incremental 00:17:38.000 --> 00:17:44.000 SPEAKER_00: distribution substation upgrade need. It could help SMUD significantly reduce that by up to 40%, 00:17:44.559 --> 00:17:49.359 SPEAKER_00: and the distribution system cost impacts by 50%, which is another opportunity to yield 00:17:49.359 --> 00:17:52.559 SPEAKER_00: more downward rate pressure with electrification if this load is well managed. 00:17:54.480 --> 00:17:59.039 SPEAKER_00: The fourth key finding is that enabling load management and nonwire solutions will require 00:17:59.039 --> 00:18:03.839 SPEAKER_00: SMUD to develop new coordination pathways between planning units. This will look like 00:18:03.839 --> 00:18:07.680 SPEAKER_00: having good coordination between planning units on book process, programs, and infrastructure 00:18:07.680 --> 00:18:16.319 SPEAKER_00: investments. Before we get into the analysis, I just wanted to outline our scope of work for 00:18:16.319 --> 00:18:21.279 SPEAKER_00: this study. The first phase of the study was to develop inputs and our scenario assumptions. 00:18:22.639 --> 00:18:27.200 SPEAKER_00: We built the study on a lot of work that SMUD had already done, building upon a lot of load 00:18:27.200 --> 00:18:31.920 SPEAKER_00: forecasting and DR adoption forecasting that SMUD had already produced through past studies. 00:18:32.559 --> 00:18:36.960 SPEAKER_00: But in this study, we took a detailed look at how EV charging management could look like across a 00:18:36.960 --> 00:18:41.600 SPEAKER_00: bunch of different types of managed charging behavior, as well as different vehicle segments. 00:18:41.600 --> 00:18:46.080 SPEAKER_00: So that was a big part of our input and scenario development, doing some EV charging load shaping, 00:18:46.080 --> 00:18:50.480 SPEAKER_00: thinking about different kind of scenarios we wanted to test. After we developed all of our 00:18:50.480 --> 00:18:55.039 SPEAKER_00: input scenarios for DR adoption, DR load shapes, managed charging, we went into the next phase of 00:18:55.039 --> 00:19:00.399 SPEAKER_00: work, which was to develop a long-term distribution load forecast. So this load forecast looked out 00:19:00.399 --> 00:19:05.279 SPEAKER_00: through 2040, you know, longer than a typical distribution planning cycle. And with those load 00:19:05.279 --> 00:19:09.440 SPEAKER_00: forecasts, we produced for each scenario, we also assessed what generally the upgrade need would 00:19:09.440 --> 00:19:16.240 SPEAKER_00: look like to support that level of load growth. The map here on the right side is just to illustrate 00:19:16.240 --> 00:19:22.879 SPEAKER_00: the level of analytical rigor and detail that went to this study. For the long-term distribution load 00:19:22.880 --> 00:19:27.600 SPEAKER_00: forecasts, the study leveraged load seer, which is a software platform that SMUD invested in, 00:19:27.600 --> 00:19:32.000 SPEAKER_00: that is a distribution load forecasting and planning tool. Every one of those kind of little 00:19:32.000 --> 00:19:37.520 SPEAKER_00: dots you see on the map is a location in which we forecasted that public DCFC charging would be 00:19:37.520 --> 00:19:43.120 SPEAKER_00: adopted under a high public DCFC scenario. So you can see the level of spatial detail we went to, 00:19:43.120 --> 00:19:47.040 SPEAKER_00: to really map all the places where DR adoption could occur and the likelihood that it would occur 00:19:47.040 --> 00:19:52.320 SPEAKER_00: there as we developed these load forecasts. So after developing all these distribution load forecasts 00:19:52.319 --> 00:19:56.399 SPEAKER_00: and assessing what the infrastructure upgrade needs, we went into a next phase of analysis. 00:19:57.359 --> 00:20:02.240 SPEAKER_00: The first step of the analysis was to do our cost impact. We looked at for all these upgrades that 00:20:02.240 --> 00:20:06.079 SPEAKER_00: SMUD would need, what would be the incremental distribution revenue requirement that SMUD would 00:20:06.079 --> 00:20:12.399 SPEAKER_00: need to be able to build all those out over the course of the next 15 years? The next phase of 00:20:12.399 --> 00:20:17.439 SPEAKER_00: our analysis was to take a targeted look at the opportunity to use non-wire solutions. And in the 00:20:17.440 --> 00:20:23.279 SPEAKER_00: study we considered both managed EV as well as distributed battery as a non-wire solution 00:20:23.279 --> 00:20:28.160 SPEAKER_00: technology that could be deployed to help avoid some of those distribution upgrades we identified 00:20:28.160 --> 00:20:33.840 SPEAKER_00: in the second step of the study. And then the final phase of the study was to work with SMUD 00:20:33.840 --> 00:20:39.200 SPEAKER_00: staff thinking about how programs and processes of SMUD need to evolve to be able to leverage DR 00:20:39.200 --> 00:20:42.640 SPEAKER_00: as both a bulk system asset as well as a distribution system asset. 00:20:48.400 --> 00:20:53.039 Unknown: Before we get into the results, I just wanted to introduce the scenarios. As Rachel teed up, 00:20:53.039 --> 00:20:57.120 SPEAKER_00: we did a lot of scenario analysis in this study and I want to introduce these before we show some 00:20:57.120 --> 00:21:03.680 SPEAKER_00: of the results associated with these. The graph on the left is an illustrative example of what EV 00:21:03.680 --> 00:21:08.960 SPEAKER_00: charging looked like in all of these scenarios over the course of a day. All of the IDRP forecasts 00:21:08.960 --> 00:21:13.120 SPEAKER_00: have all types of DRs embedded in them, building, electrification, energy efficiency, solar, and 00:21:13.119 --> 00:21:17.679 SPEAKER_00: storage. The key differentiation between the scenarios is the type of load management and 00:21:17.679 --> 00:21:22.719 SPEAKER_00: amount we assume. So our first scenario which is highlighted in gray is our reference or 00:21:22.719 --> 00:21:27.119 SPEAKER_00: business as usual scenario. So this was meant to represent kind of the current trajectory of SMUD's 00:21:27.119 --> 00:21:32.639 SPEAKER_00: programs as they are today. And so in this world, you know, some customers are not managing their 00:21:32.639 --> 00:21:37.199 SPEAKER_00: charging. Some customers are going to passively manage charging on the time of use rates that 00:21:37.199 --> 00:21:41.839 SPEAKER_00: SMUD already has in place. And another fraction of customers are going to be enrolled in more 00:21:41.839 --> 00:21:46.000 SPEAKER_00: active managed charging programs. They look kind of like how SMUD's programs are today really 00:21:46.000 --> 00:21:51.439 SPEAKER_00: designed around bulk system price signals. So that was our reference scenario meant to kind of 00:21:51.439 --> 00:21:56.799 SPEAKER_00: represent business as usual. And then off of that, we developed two what we describe here as bookend 00:21:56.799 --> 00:22:02.240 SPEAKER_00: scenarios. These are not necessarily achievable scenarios. They all assume very, you know, 00:22:02.240 --> 00:22:07.199 SPEAKER_00: pretty much complete participation in some kind of active managed charging program. But they really 00:22:07.199 --> 00:22:11.119 SPEAKER_00: were bookend scenarios to kind of test the full solution space and see what the range of impacts 00:22:11.119 --> 00:22:16.000 SPEAKER_00: could be. These two bookend scenarios are quite different in terms of what kind of price signals 00:22:16.000 --> 00:22:20.719 SPEAKER_00: and load management goes on in these kind of active managed scenarios. We have our manage for 00:22:20.719 --> 00:22:25.279 SPEAKER_00: bulk system needs scenario which is that green shape there. And in that world, we still have 00:22:25.279 --> 00:22:30.079 SPEAKER_00: quite a bit of customers passively managing their charging and time of use rates as well as half 00:22:30.079 --> 00:22:34.719 SPEAKER_00: customers participating in an active managed charging program designed around bulk system 00:22:34.719 --> 00:22:40.479 SPEAKER_00: price signals. So trying to avoid those SMUD system peak hours and increase charging in the middle of 00:22:40.480 --> 00:22:46.160 SPEAKER_00: the day. The third scenario here is the manage to find peak scenario. In this scenario, we still 00:22:46.160 --> 00:22:51.839 SPEAKER_00: incentivize customers to avoid those system peak hours. So try to minimize charging in hours that 00:22:51.839 --> 00:22:57.680 SPEAKER_00: would put pressure on SMUD's need for new generation capacity. But outside of those hours, try to find 00:22:57.680 --> 00:23:02.640 SPEAKER_00: their peak as much as possible, conduct charging in a coordinated fashion to avoid creating the 00:23:02.640 --> 00:23:08.160 SPEAKER_00: rebound peak. So as you see in this graphic here, kind of the key differentiation between that green 00:23:08.160 --> 00:23:13.120 Unknown: scenario and the reference scenario is we see that that more aggressive level of managing 00:23:13.120 --> 00:23:18.240 SPEAKER_00: charging around bulk system price signals kind of creates a really concentrated charging profile. 00:23:18.240 --> 00:23:22.400 SPEAKER_00: We see load really build up in the middle of the day. And then we see a strong rebound peak kind of 00:23:22.400 --> 00:23:27.279 SPEAKER_00: after system peak hours or time of use rates hours. As we get into results, I just want to build that 00:23:27.279 --> 00:23:32.640 SPEAKER_00: intuition that that could kind of create a new challenge with a localized new peak in a certain 00:23:32.640 --> 00:23:35.279 SPEAKER_00: subset of hours. 00:23:38.960 --> 00:23:43.200 SPEAKER_00: So now to get into some of our key findings in more detail. The first key finding is that 00:23:43.200 --> 00:23:49.920 SPEAKER_00: electrification presents an opportunity to increase SMUD's utilization of its distribution 00:23:49.920 --> 00:23:55.680 SPEAKER_00: system and create downward rate pressure. In this chart here, we're showing in the yellow bars 00:23:55.680 --> 00:24:01.040 SPEAKER_00: the investment that SMUD will need to make in its distribution system for primary distribution 00:24:01.040 --> 00:24:05.920 SPEAKER_00: system upgrades under our analysis here, as well as an estimate of what the secondary system costs 00:24:06.000 --> 00:24:11.279 SPEAKER_00: would look like. So SMUD will need to make some upfront investments in that capital in those new 00:24:11.279 --> 00:24:16.640 SPEAKER_00: projects to enable that load growth. But as it does, load continues to grow, that utilization 00:24:16.640 --> 00:24:22.160 SPEAKER_00: of existing assets as well as new assets will grow over time. And as load grows, SMUD will take in 00:24:22.160 --> 00:24:27.759 SPEAKER_00: more revenue as illustrated in those light blue bars. And the net balance here is expecting kind 00:24:27.759 --> 00:24:32.080 SPEAKER_00: of a downward rate pressure as a result of all that load growth and increased utilization of those 00:24:32.079 --> 00:24:45.359 SPEAKER_00: assets of up to about 25% by 2040. The next key finding is that electrification is expected to 00:24:45.359 --> 00:24:52.319 SPEAKER_00: increase the annual volume of substation upgrades or additions by about 30 to 60%. So historically, 00:24:52.319 --> 00:24:57.359 SPEAKER_00: in a typical year, SMUD has done about eight substation projects. That has been for typical 00:24:57.359 --> 00:25:02.959 SPEAKER_00: levels of customer growth, asset health index issues, aging transformers, or other types of 00:25:02.959 --> 00:25:07.839 SPEAKER_00: emergent failures. This study was really trying to identify what additional upgrades would be needed 00:25:07.839 --> 00:25:12.319 SPEAKER_00: based off of this electrification driven load growth. And what we see is a significant increase 00:25:12.959 --> 00:25:18.719 SPEAKER_00: depending on the scenario. In our manage for bulk system needs scenario, we see the highest rate of 00:25:18.719 --> 00:25:23.759 SPEAKER_00: distribution upgrades is needed. So when we see that charging is managed purely around bulk system 00:25:23.759 --> 00:25:28.240 SPEAKER_00: price signals, we can create new localized peaks in the distribution system that can trigger more 00:25:28.240 --> 00:25:34.720 SPEAKER_00: upgrades than if we manage charging to help smooth out those rebound peaks and mitigate any kind of 00:25:34.720 --> 00:25:39.920 SPEAKER_00: load secondary load impact on the distribution system as in that managed peak scenario. 00:25:41.440 --> 00:25:46.960 Unknown: I'm just going to caveat this analysis that this is not a detailed distribution engineering study. 00:25:46.960 --> 00:25:50.720 SPEAKER_00: So there are other opportunities for SMUD to potentially mitigate some of these upgrade needs 00:25:50.720 --> 00:25:55.920 SPEAKER_00: through circuit switching. The other thing I want to call out is what our key finding of this study 00:25:55.920 --> 00:26:02.480 SPEAKER_00: is that SMUD should really evolve their distribution planning processes to do more scenario analysis, 00:26:02.480 --> 00:26:07.360 SPEAKER_00: do more long-term forecasting, and really take an active stance towards monitoring this load growth 00:26:07.360 --> 00:26:10.559 SPEAKER_00: so they're ready and prepared for if and when it arrives. 00:26:15.839 --> 00:26:20.319 SPEAKER_00: The next key finding I want to highlight is that in this scenario forecast, 00:26:20.319 --> 00:26:26.639 SPEAKER_00: we really saw that SMUD's distribution upgrade needs will really accelerate in the next few years. 00:26:27.279 --> 00:26:32.639 SPEAKER_00: So this gives SMUD a limited number of years to really develop programs and processes to 00:26:33.359 --> 00:26:38.399 SPEAKER_00: engage in dynamic load management. This chart here is illustrating the distribution 00:26:38.399 --> 00:26:42.559 SPEAKER_00: substation projects as well as bulk substation bank upgrades that we identified as needed in 00:26:42.559 --> 00:26:47.759 SPEAKER_00: the study under our three scenarios. Our reference are managed for bulk system and managed to find 00:26:47.759 --> 00:26:52.559 SPEAKER_00: peaks. So again, we see there's a lot more investments needed in that managed for bulk system 00:26:52.559 --> 00:26:56.799 SPEAKER_00: needs scenario versus the managed to find peaks scenario. And we see that the upgrades really start 00:26:56.799 --> 00:27:05.359 SPEAKER_00: to accelerate in the 2030, 2035 timeframe. So the kind of key finding and recommendation we made, 00:27:05.359 --> 00:27:09.519 SPEAKER_00: which is based on this finding, is that SMUD really needs to take an active and 00:27:09.519 --> 00:27:14.640 SPEAKER_00: stance towards really identifying the different requirements they need from their non-wires 00:27:14.720 --> 00:27:18.960 SPEAKER_00: solutions projects and how they are going to define their data needs, 00:27:18.960 --> 00:27:22.800 SPEAKER_00: begin to do some piloting and begin to incorporate that into their normal planning process. 00:27:24.000 --> 00:27:31.120 SPEAKER_06: I'm going to ask you, John, and one of the things that is a blind and lost piece, 00:27:31.120 --> 00:27:36.240 SPEAKER_06: blind, but you certainly haven't decided that managing the peaks is superior. But if you look 00:27:36.240 --> 00:27:43.040 SPEAKER_06: at the marginal cost of energy as well as that marginal environmental cost, right, that you would 00:27:43.599 --> 00:27:49.599 Unknown: prefer to manage for bulk system needs, right, you want people to charge from 10 to 2, even though 00:27:49.599 --> 00:27:58.159 SPEAKER_06: it creates a peak. So is there ‑‑ are you trying to say that or are you just saying this is one of the 00:27:58.159 --> 00:28:04.159 SPEAKER_06: scenarios, right, that we've analyzed? Is there a commentary to that base result? 00:28:04.720 --> 00:28:08.879 Unknown: Yeah, I think one of the things you're pointing to is that there are a lot of locations on the 00:28:08.880 --> 00:28:15.200 SPEAKER_00: distribution system where there is head room. And the level of load management, you can do this 00:28:15.200 --> 00:28:20.080 SPEAKER_00: really aggressive load management around your bulk system peak. You can really try to maximize load 00:28:20.080 --> 00:28:23.680 SPEAKER_00: in the middle of the day if you're not too worried about a rebound peak because you have a lot of 00:28:23.680 --> 00:28:29.520 SPEAKER_00: head room. But there are locations where if you take that strategy, you'll create a new distribution 00:28:29.520 --> 00:28:34.640 SPEAKER_00: challenge and that could, you know, make those cost savings a little bit of a wash. 00:28:35.520 --> 00:28:42.000 SPEAKER_00: And did the ‑‑ there's a lot of slides ago. Did you try to look at that comparison and say, hey, 00:28:42.720 --> 00:28:49.040 SPEAKER_06: the electricity is free, right, in the middle of the day, we should invest in these 00:28:49.040 --> 00:28:52.880 SPEAKER_06: transformers that allows us to handle those peaks when the power is at its cheapest? 00:28:53.600 --> 00:28:57.600 Unknown: Yeah, totally. Sorry, I was trying to see if we had our appendix slides here, but I don't think we do. 00:28:57.599 --> 00:29:06.480 SPEAKER_00: Yeah, we did. So we did an analysis where we looked at, like, what is the bulk system benefit 00:29:06.480 --> 00:29:11.679 SPEAKER_00: you get in all of these scenarios and what's the incremental distribution cost? And what we found 00:29:11.679 --> 00:29:16.480 SPEAKER_00: is that with the managed bulk system need scenario, you have a big bulk system benefit, 00:29:16.480 --> 00:29:21.119 SPEAKER_00: but you have a relatively incremental distribution cost, and it's kind of a wash in terms of the 00:29:21.119 --> 00:29:26.719 SPEAKER_00: total benefit across the entire system. Whereas in this managed defined peak scenario, you get 00:29:26.720 --> 00:29:31.279 SPEAKER_00: still a lot of that bulk system benefit that you do in the managed bulk system, almost, I would 00:29:31.279 --> 00:29:37.039 SPEAKER_00: say, majority of it, because you're still shifting away from your, you know, peak hours. You're 00:29:37.039 --> 00:29:41.600 SPEAKER_00: getting a little bit less value, you know, you're kind of having some higher loads and hours that 00:29:41.600 --> 00:29:47.200 SPEAKER_00: are maybe a slightly more energy cost, but you have a lot of distribution benefits. That yielded 00:29:47.200 --> 00:29:51.200 SPEAKER_00: the total ‑‑ the total system cost that was lower than other scenarios. 00:29:51.200 --> 00:29:51.920 Unknown: Great. Thank you. 00:29:56.720 --> 00:30:07.680 Unknown: Thanks for the question. That's a good one. All right. I'm going to keep going and talk about how 00:30:07.680 --> 00:30:12.799 SPEAKER_00: SMUD's customer programs need to evolve to take advantage of the locational benefits. 00:30:15.440 --> 00:30:20.640 Unknown: You know, with programs, conventional DER programs that are really designed around taking advantage 00:30:21.440 --> 00:30:26.400 SPEAKER_00: of trying to avoid generation capacity investments, SMUD can dispatch all of the 00:30:26.400 --> 00:30:32.480 SPEAKER_00: resources involved in that type of program on a single system‑wide signal. When you're using DERs 00:30:32.480 --> 00:30:38.880 SPEAKER_00: for a locationally targeted program, diversity of dispatch signals is key. Different elements of the 00:30:38.880 --> 00:30:43.840 SPEAKER_00: distribution system peak at different times. And as we saw in our scenario analysis, kind of 00:30:43.840 --> 00:30:48.720 SPEAKER_00: coordinated to cascading charging of different types of resources is necessary to kind of avoid 00:30:48.799 --> 00:30:57.200 SPEAKER_00: types of rebound peaks. Another key difference is that when you're using DERs for a generation 00:30:57.200 --> 00:31:03.600 SPEAKER_00: capacity type program, the utility takes on a financial risk. But the utility could likely make 00:31:03.600 --> 00:31:09.440 SPEAKER_00: up for any shortfall in performance or unexpected challenges with customer enrollment by getting a 00:31:10.079 --> 00:31:15.759 SPEAKER_00: short‑term capacity contract in a liquid market in KISO. But when we're talking about using DERs 00:31:15.759 --> 00:31:20.960 SPEAKER_00: for a locational capacity, the utility takes on both physical and financial risk. There are 00:31:20.960 --> 00:31:27.759 SPEAKER_00: limited backup options if DER enrollment in a program targeted at locational capacity falls short 00:31:28.559 --> 00:31:33.759 SPEAKER_00: of the system needs. There's also a difference here in terms of the risk when you're thinking 00:31:33.759 --> 00:31:39.200 SPEAKER_00: about customer opt‑out. The impact of any one customer opting out of a program that is a system‑wide 00:31:39.200 --> 00:31:45.119 SPEAKER_00: program target around generation capacity is rather minimal. It's still something to be thinking 00:31:45.119 --> 00:31:50.079 SPEAKER_00: about monitoring. But when you're talking about locational capacity, if any one customer opts out 00:31:50.079 --> 00:31:55.279 SPEAKER_00: when you're using a smaller pool of customers as a resource, the risk of anyone opting out is much 00:31:55.279 --> 00:32:02.559 SPEAKER_00: more significant. Another key difference between programs designed around generation capacity needs 00:32:02.559 --> 00:32:08.479 SPEAKER_00: versus locational capacity needs is that generation capacity is a value that's easy to forecast over 00:32:08.479 --> 00:32:14.799 SPEAKER_00: the lifetime of a program and it's rather persistent. With locational capacity, the value of it is 00:32:15.440 --> 00:32:21.839 SPEAKER_00: transient in time. The value of DER for the distribution system only exists where there's 00:32:21.839 --> 00:32:26.639 SPEAKER_00: a distribution system constraint and it only exists until SMUD builds the upgrade to alleviate that 00:32:26.639 --> 00:32:32.079 SPEAKER_00: type of bottleneck. So as SMUD goes forward and tries to build out programs that help them 00:32:32.079 --> 00:32:36.799 SPEAKER_00: capture locational value of DER, there are a few key coordination challenges they need to 00:32:36.799 --> 00:32:41.680 SPEAKER_00: think about. SMUD's customer programs teams need to really understand when and where there are 00:32:41.759 --> 00:32:45.840 SPEAKER_00: distribution system constraints and when and where they might be able to help distribution 00:32:45.840 --> 00:32:52.000 SPEAKER_00: planning leverage those DERs for distribution capacity deferral. Another key coordination 00:32:52.000 --> 00:32:56.160 SPEAKER_00: challenge is between distribution planning and resource planning. If distribution planning is 00:32:56.160 --> 00:33:02.480 SPEAKER_00: intending to leverage a collection of DERs for a non-wire solution alternative, resource planning 00:33:02.480 --> 00:33:06.160 SPEAKER_00: needs to understand how distribution planning is going to need to dispatch that resource for their 00:33:06.160 --> 00:33:10.799 SPEAKER_00: distribution peak needs and how that might diminish the ability of resource planning to use that as a 00:33:10.799 --> 00:33:23.839 SPEAKER_00: generation capacity resource. This is basically, hey, we can target a specific substation of 00:33:23.839 --> 00:33:30.079 SPEAKER_06: transformers as opposed to just the buckshot of our DER program going out to the region. Yes, 00:33:30.079 --> 00:33:32.240 SPEAKER_00: exactly. Good clarification. 00:33:41.359 --> 00:33:48.079 Unknown: So in addition to the scenario analysis we did in the study, we also took a look at the opportunity 00:33:48.079 --> 00:33:54.079 SPEAKER_00: to deploy targeted DER in specific locations to defer distribution upgrade needs and non-wire 00:33:54.079 --> 00:34:00.159 SPEAKER_00: solutions alternatives. So we did this analysis assessing what we were to describe as the economic 00:34:00.159 --> 00:34:05.680 SPEAKER_00: potential. Where would it be cost effective to defer some of those 36 substation upgrades we 00:34:05.680 --> 00:34:11.200 SPEAKER_00: identified in the reference scenario by deploying managed charging targeted in those specific 00:34:11.200 --> 00:34:16.720 SPEAKER_00: locations or distributed storage. And what we identified is there's a lot of economic potential 00:34:16.720 --> 00:34:21.200 SPEAKER_00: out there to defer distribution upgrades. There are a lot of challenges to realizing that potential, 00:34:21.200 --> 00:34:27.039 SPEAKER_00: however. And Spud is kind of addressing those today by thinking about what makes a good economic 00:34:27.039 --> 00:34:31.840 SPEAKER_00: investment in non-wire solutions and thinking about, you know, when is the risk appropriate to 00:34:31.840 --> 00:34:36.240 SPEAKER_00: be able to invest in this solution, thinking about how technologies are going to be ready to 00:34:36.240 --> 00:34:41.200 SPEAKER_00: be able to deploy in a non-wire solution, and getting proactive stance about thinking about 00:34:41.200 --> 00:34:51.920 SPEAKER_00: how you're designing these programs. Another key finding I want to land on here, 00:34:51.920 --> 00:34:56.960 SPEAKER_00: and this is really relevant to your upcoming discussion about your IRP, is that distributed 00:34:56.960 --> 00:35:02.720 SPEAKER_00: storage or DERs really have this value stacking opportunity. They have value across the generation, 00:35:02.720 --> 00:35:09.280 SPEAKER_00: transmission, and distribution system chain. And so when you're thinking about investment in bulk 00:35:09.280 --> 00:35:13.599 SPEAKER_00: system storage, there's a key question to think about. Would it be more cost effective to cite 00:35:13.599 --> 00:35:18.320 SPEAKER_00: some of that in the distribution system? Thinking about that DER in the distribution system can help 00:35:18.320 --> 00:35:23.199 SPEAKER_00: you serve your generation capacity needs that storage would provide while also providing some 00:35:23.199 --> 00:35:29.759 SPEAKER_00: distribution system value. So in this chart here, the purple box on the left is from Smud's zero 00:35:29.759 --> 00:35:35.839 SPEAKER_00: carbon plan, I think 2021. That study back then identified a need for bulk system storage to hit 00:35:35.839 --> 00:35:42.879 SPEAKER_00: the 2030 goal around the range of 700 to 1100 megawatts. On the right here, these red lines are 00:35:42.879 --> 00:35:49.839 SPEAKER_00: illustrating how much storage on the distribution system has distribution value. So not everywhere 00:35:49.920 --> 00:35:53.920 SPEAKER_00: in the distribution system has a constraint. So putting storage there does not give it distribution 00:35:53.920 --> 00:35:58.480 SPEAKER_00: system value. But there are certain locations where if you deployed some storage, you could 00:35:58.480 --> 00:36:03.280 SPEAKER_00: defer a substation for three or ten years. And so that's what's illustrated here in those red lines. 00:36:04.079 --> 00:36:08.000 SPEAKER_00: Now, distributed storage usually comes at a cost premium compared to bulk system storage. 00:36:08.720 --> 00:36:12.880 SPEAKER_00: Just the economy is a scale, procurement costs, other kinds of soft costs that come with procuring 00:36:12.880 --> 00:36:17.280 SPEAKER_00: resources of a smaller size. So what the green lines here are illustrating is just kind of 00:36:17.280 --> 00:36:22.720 SPEAKER_00: ether's estimate of what we think of as a typical cost premium for distributed storage. How much of 00:36:22.720 --> 00:36:28.320 SPEAKER_00: that distributed storage might be cost effective when you factor in its locational value to be 00:36:28.320 --> 00:36:31.840 SPEAKER_00: able to maybe display some of that bulk system asset that you might deploy instead. 00:36:37.680 --> 00:36:41.040 SPEAKER_00: I'll just wrap up with kind of a brief summary of what we just went through today here. 00:36:42.400 --> 00:36:45.600 SPEAKER_00: First key finding of the study was that significant load growth is coming. 00:36:46.319 --> 00:36:48.960 SPEAKER_00: But we expect this to generate downward rate pressure for SMUD. 00:36:50.239 --> 00:36:55.119 SPEAKER_00: Load management, nonwire solutions are key tools that SMUD can deploy to try to maximize that 00:36:55.119 --> 00:37:01.679 SPEAKER_00: downward rate pressure. Another key finding is that enabling load growth, all this electrification 00:37:01.679 --> 00:37:05.679 SPEAKER_00: load to meet economy-wide decarbonization goals is going to require some upfront investment in 00:37:05.679 --> 00:37:10.719 SPEAKER_00: staffing and capital projects. We're expecting that SMUD's annual volume of distribution system 00:37:10.719 --> 00:37:15.679 SPEAKER_00: upgrades can increase by a rate of 30 to 60 percent per year. We also found that there's 00:37:15.679 --> 00:37:20.159 SPEAKER_00: significant potential to use managed charging and nonwire solutions to reduce the incremental 00:37:20.159 --> 00:37:26.000 SPEAKER_00: distribution substation upgrade need. There's significant barriers to really realizing that 00:37:26.000 --> 00:37:30.159 SPEAKER_00: and SMUD needs to take a proactive stance of defining what makes a good nonwire solution 00:37:30.159 --> 00:37:34.719 SPEAKER_00: investment, what kind of risk management does SMUD want to deploy in those, getting ready to 00:37:34.719 --> 00:37:39.919 SPEAKER_00: enable customers to participate in those types of programs and getting all their ADMS terms 00:37:39.920 --> 00:37:46.320 SPEAKER_00: and technology ready to be able to leverage DRs for that use. The last key finding is just that 00:37:46.320 --> 00:37:51.760 SPEAKER_00: load management enables SMUD to think about new coordination pathways between different planning 00:37:51.760 --> 00:37:57.200 SPEAKER_00: groups at SMUD, thinking about how to leverage DRs as both a distribution system asset and a bulk 00:37:57.200 --> 00:38:02.800 SPEAKER_00: system asset to kind of minimize total system costs. So with that, I'll wrap up there and 00:38:03.120 --> 00:38:04.800 SPEAKER_00: then there's questions. Otherwise, I'll hand it over to Alex. 00:38:04.800 --> 00:38:14.720 SPEAKER_00: Yeah. Two points I want to make. Actually, if you could jump back two slides to your part, 00:38:14.720 --> 00:38:20.480 SPEAKER_06: that one. Could you just explain a little bit what these different cost numbers we're seeing 00:38:20.480 --> 00:38:27.280 SPEAKER_06: on the bottom are actually, you actually mean? Yeah. So these are the costs of two-hour distributed 00:38:27.280 --> 00:38:32.080 SPEAKER_00: storage, which is the resource we assumed in this particular chart. We did this in classes with other 00:38:32.079 --> 00:38:36.719 SPEAKER_00: types of DRs, too, but in this particular chart is the resource that SMUD is deploying to defer 00:38:36.719 --> 00:38:42.559 SPEAKER_00: distribution upgrade. We looked at this for a range of costs. SMUD is out there thinking, 00:38:42.559 --> 00:38:46.319 SPEAKER_00: talking to vendors all the time, thinking about what resources they might be able to procure. 00:38:48.960 --> 00:38:52.559 SPEAKER_00: SMUD is trying to develop these in the US. They're going to get more bids and understand these costs 00:38:52.559 --> 00:38:57.679 SPEAKER_00: more. So we really just wanted to characterize a range of potential by looking at a wide range 00:38:57.759 --> 00:39:04.879 SPEAKER_00: of resource costs. So there's a very low cost estimate there and then some analysis that E3 00:39:04.879 --> 00:39:11.440 SPEAKER_00: conducted that's aligned with some of the cost impact. So on that gray bar, 00:39:14.000 --> 00:39:21.519 Unknown: it's got a slide. We never got the colors. So you have 36 potential substations and you're saying 00:39:21.519 --> 00:39:28.239 SPEAKER_06: 32 of those can be deferred by at a cost of $95 per kilowatt year. You may interpret that right? 00:39:28.239 --> 00:39:32.000 SPEAKER_06: Yeah. It could be deferred for seven years if you have storage available at that cost. 00:39:34.880 --> 00:39:41.360 Unknown: Okay. Interesting. And then my comment, I thought what was interesting with this chart is it's very 00:39:41.360 --> 00:39:46.719 SPEAKER_06: clear you see the difference between the public power business model and the IOU business model. 00:39:46.719 --> 00:39:55.439 SPEAKER_06: Where we don't have an inherent incentive to spend on capital and to add to our bottom line. 00:39:55.439 --> 00:40:00.480 SPEAKER_06: And so I think it's everywhere we're very interested in that flexibility and being 00:40:00.480 --> 00:40:05.039 SPEAKER_06: creative. However we can save money, we're going to save money to help keep our rates low. 00:40:06.559 --> 00:40:11.039 SPEAKER_06: And then the last point, I think back to that summary slide. The only other point I wanted to 00:40:11.519 --> 00:40:18.239 SPEAKER_06: last bullet here, I wrote a note for it, it popped up, is how important it is for us to think 00:40:18.239 --> 00:40:24.559 SPEAKER_06: creatively and cross cutting across the organization. I know I had some issues with one of the circuits 00:40:24.559 --> 00:40:32.000 SPEAKER_06: in my ward where they're on a bluff. So there's only one way in and it always impacts their 00:40:32.000 --> 00:40:36.239 SPEAKER_06: ability to have when there's a storm, they're often out and they're out for days at a time 00:40:36.239 --> 00:40:41.359 SPEAKER_06: because there's only 40 homes served. So they get put on the low priority list automatically 00:40:41.359 --> 00:40:48.399 SPEAKER_06: when somebody 30,000 homes are out. But I said, why don't we offer them our virtual power home 00:40:48.399 --> 00:40:54.239 SPEAKER_06: battery program. But there's a lot of inertia inside the organization where there's a lot of 00:40:54.239 --> 00:40:59.359 SPEAKER_06: business students that have to communicate and swap back and forth. But part of this analysis 00:40:59.359 --> 00:41:04.079 SPEAKER_06: is really showing just the importance of trying to break down those barriers and think creatively 00:41:04.079 --> 00:41:10.239 SPEAKER_06: about solutions and getting to yes versus just oh, no, we can't do it. So thank you for this. I 00:41:10.239 --> 00:41:20.880 SPEAKER_06: think it was a great presentation. Okay. I think you're up. 00:41:27.519 --> 00:41:31.679 Unknown: Good evening, everyone. I'm Andeep Singh. I'm the director of distribution planning and operations. 00:41:31.919 --> 00:41:38.480 SPEAKER_02: And it's my team's responsibility to plan and operate our grid. On the distribution side, 00:41:38.480 --> 00:41:44.639 SPEAKER_02: we plan on two-year cycles, we plan on five-year cycles, and on the transmission side, we plan in 00:41:44.639 --> 00:41:51.839 SPEAKER_02: 10-year cycles or 20-year cycles. We plan for future load growth, just like what was presented 00:41:51.839 --> 00:41:57.440 SPEAKER_02: to us. We plan for contingencies. We plan for regulatory compliance and we plan for weather 00:41:57.440 --> 00:42:04.960 SPEAKER_02: events. And studies like such that was presented to us, they're extremely important to us because 00:42:04.960 --> 00:42:11.599 SPEAKER_02: they help us plan better. For today, we're going to concentrate on distribution planning because 00:42:11.599 --> 00:42:17.440 SPEAKER_02: that's where the EVs are going to be connected. So let's walk through our distribution planning 00:42:17.440 --> 00:42:26.240 SPEAKER_02: process. What inputs inform our forecast? We look at our historical peak load for the last few years 00:42:26.959 --> 00:42:33.919 SPEAKER_02: and then we look at our new customer demand that's coming. And that combination provides us 00:42:35.439 --> 00:42:42.239 SPEAKER_02: the demand to create a five-year distribution forecast. And once that five-year forecast is 00:42:43.279 --> 00:42:49.759 SPEAKER_02: achieved, then we identify the capacity needs. We compare the forecasted demand with available 00:42:49.760 --> 00:42:56.320 SPEAKER_02: capacity to identify where and when the deficiencies are expected. And when those 00:42:56.320 --> 00:43:01.360 SPEAKER_02: deficiencies are identified, then we look for the mitigation measures. And the mitigation measures 00:43:01.360 --> 00:43:08.640 SPEAKER_02: could be seasonal load transfers, they could be switching loads, they could be substation upgrades, 00:43:08.640 --> 00:43:14.640 SPEAKER_02: just like adding a new transformer to a substation or adding more capacity, or it could be a brand 00:43:14.719 --> 00:43:22.079 SPEAKER_02: new substation build. And if there's a large load that comes outside of this planning process, 00:43:22.960 --> 00:43:27.599 Unknown: we work closely with our commercial development and strategic count teams to support the large 00:43:27.599 --> 00:43:34.879 SPEAKER_02: load projects. We have Rule 2 and Rule 16 that helps us guide that process for the large loads 00:43:34.879 --> 00:43:40.639 SPEAKER_02: on the distribution side. And as you all know, for the transmission side, we are working to develop 00:43:40.639 --> 00:43:45.759 SPEAKER_02: a large load policy on the transmission side. But today we're talking about distribution. 00:43:47.119 --> 00:43:54.480 SPEAKER_02: So our distribution forecast, which is a five-year forecast, it informs our 10-year and 20-year 00:43:54.480 --> 00:44:01.119 SPEAKER_02: forecast for transmission as well as the integrated or the resource planning forecast for the 20-year. 00:44:05.440 --> 00:44:08.719 SPEAKER_02: Let's talk about the EV impacts that were identified in the study. 00:44:10.639 --> 00:44:17.599 SPEAKER_02: EVs along with the DERs will change our grid. Our grid used to be a unidirectional grid where 00:44:17.599 --> 00:44:23.440 SPEAKER_02: we have our generation all the way to distribution and the power used to flow one way. With the 00:44:23.440 --> 00:44:29.679 SPEAKER_02: evolution of EVs as well as DERs, the grid has become bidirectional grid. And the bidirectional 00:44:29.679 --> 00:44:34.960 SPEAKER_02: grid triggers the need for new and greater cross-functional efforts to manage unique loads 00:44:34.960 --> 00:44:42.880 SPEAKER_02: with evolving load profiles. EVs are different. The forecasts for EV growth are uncertain. 00:44:42.880 --> 00:44:46.639 SPEAKER_02: So we assume that the growth will be incremental and it will be evolving. 00:44:47.440 --> 00:44:52.159 Unknown: They have unique load profiles. We saw in one of the graphs that was shown by E3 that 00:44:53.519 --> 00:44:57.519 SPEAKER_02: they have different peaks. Our peaks might be shifting from our traditional peaks. 00:44:58.239 --> 00:45:04.960 SPEAKER_02: So we account for those as well. The idea always is, and Mikaela touched on that, 00:45:04.960 --> 00:45:11.679 SPEAKER_02: our aim is to always increase our existing system utilization through new technology and 00:45:11.679 --> 00:45:16.639 SPEAKER_02: ongoing pilots. We're constantly looking at utilizing our grid very efficiently to 00:45:18.239 --> 00:45:24.559 SPEAKER_02: prevent unnecessary infrastructure upgrades. It's always our goal to utilize our existing resources. 00:45:25.519 --> 00:45:29.920 SPEAKER_02: And looking forward, we're looking at non-wire solutions. And non-wire solutions could be the 00:45:29.920 --> 00:45:35.199 SPEAKER_02: DERs. They could be batteries. They could be working with our customers and look at load flex 00:45:35.199 --> 00:45:40.799 SPEAKER_02: options and demand forecasts as well. Many options there. But we're constantly looking at that. 00:45:41.679 --> 00:45:46.320 SPEAKER_02: So the key takeaway on this slide is that the EV growth will introduce new complexities, 00:45:46.320 --> 00:45:51.519 SPEAKER_02: and we're aware of that. But it will also introduce new opportunities to innovate and plan for a 00:45:51.599 --> 00:45:54.639 SPEAKER_02: smarter, flexible, and reliable grid in the future. 00:45:58.239 --> 00:46:05.519 SPEAKER_02: What are we doing with this information? What are some of the ongoing efforts, as it was touched by 00:46:05.519 --> 00:46:11.360 SPEAKER_02: E3? We anticipated this. We anticipated this was coming. So we are already ahead of the game. 00:46:11.920 --> 00:46:18.559 SPEAKER_02: We have invested in our system in efforts like Advanced Distribution Management System, ADMS, 00:46:19.440 --> 00:46:23.360 SPEAKER_02: Distribution or Distributed Energy Resource Management System, DERMs, 00:46:24.960 --> 00:46:31.039 SPEAKER_02: as well as our Advanced Metering. These tools allow us to gain more visibility and control into 00:46:31.039 --> 00:46:35.360 SPEAKER_02: our grid, which is, like I mentioned, it's evolving and it's becoming bi-directional grid. 00:46:36.079 --> 00:46:43.519 Unknown: We have a new forecast tool now that allows us to do hourly forecasts that predict load growth 00:46:43.519 --> 00:46:49.759 SPEAKER_02: while accounting for the impacts of DERs and EVs at a more granular level. Our traditional 00:46:49.759 --> 00:46:56.400 SPEAKER_02: planning process used to work on peak-based planning. It was a static planning that we used 00:46:56.400 --> 00:47:01.759 SPEAKER_02: to perform that would look at the peak loads and we would perform distribution planning based on 00:47:01.759 --> 00:47:09.360 SPEAKER_02: that. This tool, LoadSear, as was mentioned in the previous slides, it allows us to look at 00:47:09.360 --> 00:47:16.400 SPEAKER_02: the entire 8,760 hours during the year to look at the granular level to see how the loads are 00:47:16.400 --> 00:47:23.680 SPEAKER_02: shifting and what can we do to efficiently utilize our grid. For our future mitigation measures, 00:47:24.480 --> 00:47:29.200 SPEAKER_02: as I mentioned, we are looking at non-wire solutions that could include managed charging, 00:47:29.760 --> 00:47:34.400 SPEAKER_02: load flexing, storage, renewables and demand response options. 00:47:34.400 --> 00:47:40.880 SPEAKER_02: Our next steps, obviously, would be incorporating the learnings from this study as well as the IRP 00:47:40.880 --> 00:47:46.160 SPEAKER_02: study that's upcoming into SMUD's planning processes while preparing for new mitigation 00:47:46.160 --> 00:47:51.599 SPEAKER_02: measures that will support for greater transportation electrification in an affordable and reliable 00:47:51.599 --> 00:47:59.360 SPEAKER_02: manner. What are some of the opportunities that we're preparing for the new integrated system 00:47:59.360 --> 00:48:05.280 SPEAKER_02: planning process, which I'll talk about in the next slide, by developing a process to align 00:48:05.280 --> 00:48:12.160 SPEAKER_02: infrastructure investments across SMUD, multiple departments, to identify the lowest cost, 00:48:12.160 --> 00:48:18.559 SPEAKER_02: most reliable path forward for us. Our path forward is to leverage data, innovation and 00:48:18.559 --> 00:48:24.960 SPEAKER_02: integrated planning to meet our evolving customer needs in a more cleaner, more resilient grid. 00:48:24.960 --> 00:48:31.760 SPEAKER_02: Okay, what is integrated system planning? I know we talked about it, but I thought it would be 00:48:31.760 --> 00:48:38.000 SPEAKER_02: good to touch on that. Integrated system planning would align our infrastructure investments, 00:48:38.559 --> 00:48:46.159 SPEAKER_02: rates, managed charging, as well as DERs to identify the lowest cost, most reliable path forward to 00:48:46.159 --> 00:48:52.800 SPEAKER_02: serve our future load. And some of the key outcomes there would be cross-functional alignment, 00:48:53.760 --> 00:48:58.160 Unknown: shared understanding of the system needs. So instead of planning for distribution, 00:48:58.160 --> 00:49:04.640 SPEAKER_02: generation and transmission, separately we would plan for the entire grid in one shot. And then 00:49:04.640 --> 00:49:11.680 SPEAKER_02: more informed investment decisions, which are the obvious outcome for this. For the EVs and the DERs, 00:49:11.680 --> 00:49:18.080 SPEAKER_02: we will leverage the integrated resource plan to align our EV demand growth with siding renewable 00:49:18.079 --> 00:49:23.840 SPEAKER_02: generation, storage, flexible loads and managed charging to support our decarbonization goals. 00:49:24.400 --> 00:49:29.279 SPEAKER_02: And again, the key outcome would be holistic planning across the grid. So we would plan the 00:49:29.279 --> 00:49:36.960 SPEAKER_02: grid as a whole instead of planning separately for different sections. The strategy will support 00:49:36.960 --> 00:49:42.880 SPEAKER_02: decarbonization and reliability, and it optimizes the use of our existing and new resources. 00:49:43.840 --> 00:49:50.160 Unknown: And then we plan for uncertainty as well. We are going to use scenario analysis. We now have tools 00:49:50.160 --> 00:49:56.640 SPEAKER_02: that would help us generate scenario analysis to account for changes in vehicle costs, charging 00:49:56.640 --> 00:50:01.760 SPEAKER_02: availability, incentives, fleet adoption and customer behavior. So we would have different 00:50:02.880 --> 00:50:11.760 SPEAKER_02: graphs showing these different scenarios, and then we could utilize that to plan better. And the key 00:50:11.840 --> 00:50:18.320 SPEAKER_02: outcomes, obviously, range of potential futures. It informs flexible and adaptive strategies and a 00:50:18.320 --> 00:50:25.360 SPEAKER_02: reliable and a cost-effective path forward. So all in all, by integrating EV and DER growth into our 00:50:25.360 --> 00:50:31.520 SPEAKER_02: planning processes, we're prepared to meet our evolving customer needs while advancing a cleaner, 00:50:31.520 --> 00:50:37.520 SPEAKER_02: more reliable and affordable energy future. That concludes our presentation. Thank you. 00:50:37.519 --> 00:50:45.280 SPEAKER_02: Questions from the board? Rob? 00:50:49.679 --> 00:50:53.360 Unknown: Appreciate it. Thank you very much for a great presentation. I actually have a 00:50:54.320 --> 00:51:00.800 SPEAKER_07: question going back to the E3 presentation. In particular, there are several places where we 00:51:00.800 --> 00:51:07.760 SPEAKER_07: talk about increased sales leading to downward rate pressure. And I'm curious what the 00:51:08.800 --> 00:51:13.440 SPEAKER_07: costing model is for the energy that we use to actually sell to people. 00:51:19.120 --> 00:51:23.600 Unknown: Maybe I can walk through. Page 9, maybe. Yeah, I'll walk through the chart a bit more. 00:51:23.600 --> 00:51:30.480 SPEAKER_00: This one you're thinking about? This, yeah. Yeah. So what we have on the top here are the distribution 00:51:30.559 --> 00:51:34.559 SPEAKER_00: investments we identified. So what are the cost of those? So just looking at the kind of capital 00:51:34.559 --> 00:51:39.360 SPEAKER_00: cost, we had a simple revenue requirement model that we used to think about how those costs, 00:51:39.360 --> 00:51:44.240 SPEAKER_00: offering costs, get spread over time. Worked with SMUD's financial planning folks to help us develop 00:51:44.240 --> 00:51:50.480 SPEAKER_00: those assumptions. The blue bars are basically taking the load growth, we're expecting the 00:51:50.480 --> 00:51:56.719 SPEAKER_00: incremental load growth, and multiplying it by 8 cents per KWH, which again came from SMUD's 00:51:57.279 --> 00:52:02.239 SPEAKER_00: team, thinking about in your current rates, how much of the rate is really recovering the 00:52:02.239 --> 00:52:10.000 SPEAKER_00: distribution component of costs? So we just used a flat rate of 8 cents per KWH. Yep, flat nominal terms. 00:52:14.239 --> 00:52:16.159 Unknown: Thanks. That was my question. I appreciate it. 00:52:19.679 --> 00:52:21.919 Unknown: Anybody else? Brandon? 00:52:22.720 --> 00:52:33.599 Unknown: Yeah. One of the things I was thinking about, are there any potential barriers to this type of work? 00:52:35.119 --> 00:52:44.079 SPEAKER_06: And so I understand, I have a decent understanding of IOU planning processes and ways like regulators 00:52:44.079 --> 00:52:52.639 SPEAKER_06: can say no, but do we have any NERC requirements that we have to think about? Are there any 00:52:52.639 --> 00:53:00.319 SPEAKER_06: potential barriers that we need to overcome to do this type of work other than our own internal 00:53:01.199 --> 00:53:09.599 SPEAKER_06: ability to do it? On the distribution side, I would say no. NERC regulations would not apply 00:53:09.599 --> 00:53:17.119 SPEAKER_02: on the distribution loads, especially on the low distribution, 12 KV or under. So that's that. 00:53:18.239 --> 00:53:25.759 SPEAKER_02: Internally, as you all are aware, LoRa is rolling out our ISP strategy, so that would allow us to 00:53:26.719 --> 00:53:34.319 SPEAKER_02: work together and plan for the grid in a holistic way. So we're really looking forward to that. 00:53:34.320 --> 00:53:39.360 SPEAKER_02: I think that would eliminate any of the shortcomings that we had in the planning process. 00:53:43.680 --> 00:53:47.519 SPEAKER_06: Remember we did some of the black and beech work, which is going to be racial work. 00:53:52.720 --> 00:53:58.400 SPEAKER_06: But that really looked, that was a lot of preliminary work, looking at the edge of grid 00:53:58.400 --> 00:54:06.559 SPEAKER_06: on a circuit by circuit basis. I guess one of my questions is given our high penetration of 00:54:06.559 --> 00:54:11.599 SPEAKER_06: especially electric vehicles and to a lesser extent building electrification, what is that 00:54:11.599 --> 00:54:15.440 SPEAKER_06: current status on our distribution system? Rachel, you were just here last month talking about 00:54:16.240 --> 00:54:21.840 Unknown: the statuses of the programs. Yeah, and maybe what I'll speak to, because I smile that you bring up 00:54:21.840 --> 00:54:25.920 SPEAKER_03: the black and beech analysis, because that was really the start, right? That was the groundbreaking, 00:54:25.920 --> 00:54:31.119 SPEAKER_03: like how do we estimate what we think customer adoption of some of these DER technologies will 00:54:31.119 --> 00:54:37.200 SPEAKER_03: be and where will they be? Like how do we think about the forecasting of what that adoption will 00:54:37.200 --> 00:54:42.880 SPEAKER_03: look like, both based upon demographic and psychographic proclivity to adopt, coupled with 00:54:42.880 --> 00:54:49.280 SPEAKER_03: putting it on a geospatial basis on our distribution system and trying to line that up relative to the 00:54:49.280 --> 00:54:55.280 SPEAKER_03: grid implications with the customer adoption? And really we've just continued to evolve since 00:54:55.280 --> 00:55:01.760 SPEAKER_03: then, right? So those projections back in 2015 are not what we are projecting today in terms of 00:55:01.760 --> 00:55:07.200 SPEAKER_03: forecasts. In fact, as we were looking at forecasts with regards to electrification adoption and the 00:55:07.200 --> 00:55:12.320 SPEAKER_03: different DER adoptions to feed into the integrated resources plan analysis, that's evolved too, 00:55:12.320 --> 00:55:17.440 SPEAKER_03: right? Even this analysis was started, I guess it was last year, right? And so didn't necessarily 00:55:17.440 --> 00:55:24.240 SPEAKER_03: have all of that federal policy pullback. So that kind of speaks to the uncertainty of the information 00:55:25.280 --> 00:55:30.320 SPEAKER_03: again by looking at scenarios and bookends, it helps inform us of kind of the space in which we 00:55:30.320 --> 00:55:35.120 SPEAKER_03: know something will come together. But it goes back to that, it doesn't give us a definitive 00:55:35.120 --> 00:55:41.120 SPEAKER_03: analysis. So we just continue to refine based upon the knowledge that we have based upon analysis 00:55:41.120 --> 00:55:46.960 SPEAKER_03: to be able to help best inform what we do. But it continually iterates because of the 00:55:46.960 --> 00:55:50.000 SPEAKER_03: fact that there's multiple dynamics that factor into what that looks like. 00:55:50.719 --> 00:55:56.639 Unknown: And then one last, my last sort of comment, as a might sort of take away from this is to say, 00:55:56.639 --> 00:56:02.159 SPEAKER_06: yes, there's sort of the results of the study, yes, there's value to be had. And yes, we need to 00:56:02.159 --> 00:56:08.079 SPEAKER_06: coordinate to unlock that value. I guess my question from policy governance perspective is, 00:56:08.079 --> 00:56:12.719 SPEAKER_06: what do you, what can I monitor to ensure that we're progressing down that path? 00:56:13.199 --> 00:56:22.399 Unknown: That's a wonderful question. You know, there's really, at the end of the day, and maybe this 00:56:22.399 --> 00:56:28.000 SPEAKER_03: is nice that it's that slide, right, we want to see that downward pressure on rates. We want to 00:56:28.000 --> 00:56:35.759 SPEAKER_03: see that the revenue, that as we think about the costs that we're managing that right, that we're 00:56:35.759 --> 00:56:41.599 SPEAKER_03: we're utilizing our assets as much as possible. So I think that we'll be looking at, like, 00:56:41.599 --> 00:56:46.000 SPEAKER_03: it really is looking at success criteria, right? So currently I come and tell you, like, hey, 00:56:46.000 --> 00:56:50.719 SPEAKER_03: this is the EV adoption in SMUD's territory and this is the heat pumps and these are these things. 00:56:50.719 --> 00:56:54.799 SPEAKER_03: It's really reframing and looking at what does success look like. Maybe it's that 00:56:54.799 --> 00:56:59.519 SPEAKER_03: net revenue. Maybe it's that, like, what are we seeing in terms of costs versus what are we 00:56:59.519 --> 00:57:04.880 Unknown: relative to the revenue as we look at what that EV adoption is. So I think it's really looking 00:57:04.880 --> 00:57:08.400 SPEAKER_03: at what success is and then kind of redefining what those numbers are that we track. 00:57:11.599 --> 00:57:18.719 Unknown: Yeah, so there's a couple places in the E3 presentation where we talked about 00:57:18.719 --> 00:57:25.599 SPEAKER_09: locationally targeted programs and the benefits of that. Do we have, we had any, I realize that 00:57:25.599 --> 00:57:31.679 SPEAKER_09: we're putting some of the hardware in place, but have we had any programs that are locationally 00:57:32.400 --> 00:57:40.799 SPEAKER_09: targeted and even if we don't have those right now, how do we imagine those being rolled out 00:57:40.800 --> 00:57:49.360 SPEAKER_09: and, you know, who would, are there, like, socioeconomic issues that come up with that? 00:57:49.360 --> 00:57:55.200 SPEAKER_03: Yeah, a couple things. And I think I've talked to the board multiple times as this, you know, 00:57:55.200 --> 00:58:00.720 SPEAKER_03: has evolved as we've done all this geospatial analysis with regards to where we see load growth 00:58:00.720 --> 00:58:05.039 SPEAKER_03: being and what the implications are in the distribution grid. We do not have anything 00:58:05.039 --> 00:58:12.159 SPEAKER_03: right now where we differentiate the incentives based upon locational value. So we don't say, 00:58:12.159 --> 00:58:16.559 SPEAKER_03: okay, you customer over here, you get a higher incentive than you customer over there. 00:58:16.559 --> 00:58:21.599 SPEAKER_03: That being said, we've talked, I've talked to you about our managed EV charging pilot, 00:58:21.599 --> 00:58:26.000 SPEAKER_03: which we ran out of R&D and did analysis and we're in the process because we've got an RFP 00:58:26.000 --> 00:58:31.599 SPEAKER_03: on the street and we're, you know, evaluating bids with regards to a new provider relative to 00:58:31.599 --> 00:58:37.039 SPEAKER_03: operationalizing our managed EV charging program. And in order for the numbers to work, so this 00:58:37.039 --> 00:58:42.239 SPEAKER_03: goes back to that financial model business case, in order for those numbers to work, we're going to 00:58:42.239 --> 00:58:48.799 SPEAKER_03: have to try to encourage those customers that are behind specific transformers that we know either 00:58:48.799 --> 00:58:53.279 SPEAKER_03: have a certain number of EV customers on there or that we forecast that additional EVs will come on 00:58:53.279 --> 00:58:59.119 SPEAKER_03: there and potentially overload those transformers for the value proposition to work. So as such, 00:58:59.759 --> 00:59:04.559 Unknown: for that managed EV charging program, when we do launch that operational model next year, 00:59:04.559 --> 00:59:08.799 SPEAKER_03: we're not going to say, hey, you get this dollar and you get this lower dollar. We're going to say, 00:59:08.799 --> 00:59:14.799 SPEAKER_03: we're going to target market to those customers behind those constrained transformers. Similarly, 00:59:14.799 --> 00:59:21.759 SPEAKER_03: with the commercial VPP pilot, we are picking commercial customers behind specific substations 00:59:21.759 --> 00:59:26.799 SPEAKER_03: that are at that sweet spot of, you know, not already on our capital plan, we're already 00:59:26.800 --> 00:59:31.280 SPEAKER_03: working on upgrading that substation. Not so far out that we don't really know whether or not we're 00:59:31.280 --> 00:59:36.880 SPEAKER_03: going to have to upgrade that substation or not. So we are doing the targeting is the approach that 00:59:36.880 --> 00:59:40.640 SPEAKER_03: we're taking. But it is a conversation we're going to have to have with the board at some point of, 00:59:40.640 --> 00:59:44.560 SPEAKER_03: like, do we ever get to that point where we differentiate? But currently our approach 00:59:44.560 --> 00:59:49.039 SPEAKER_03: is really about targeting outreach to those customers and enrolling those customers 00:59:49.039 --> 00:59:53.120 SPEAKER_03: where we know that they can have the best value for SMUD. Thank you. 00:59:56.800 --> 01:00:06.640 SPEAKER_08: Sure. Thanks. I'm thinking just a little bit about, really, these are situational decisions 01:00:06.640 --> 01:00:14.560 SPEAKER_07: depending on where the consumer falls within the region. At what point do we start to talk to the 01:00:14.560 --> 01:00:22.720 SPEAKER_07: local land use authorities as to what fits where within the service area? Do we ever want to try 01:00:22.719 --> 01:00:27.599 SPEAKER_07: and say, no, you should be putting these uses in a different place so that we can serve them more 01:00:27.599 --> 01:00:33.759 SPEAKER_07: efficiently? I know we say that with the data centers, but when do we come down the size threshold? 01:00:36.959 --> 01:00:40.719 Unknown: I'll speak to it from a customer standpoint and maybe Amadeep can speak to it from a good 01:00:40.719 --> 01:00:48.000 SPEAKER_03: standpoint. One thing that we have tried to do in all of this, you know, customer adoption, 01:00:48.000 --> 01:00:56.239 SPEAKER_03: geospatial analysis approach has been how do we triangulate multiple sources of data to see where 01:00:56.800 --> 01:01:03.199 SPEAKER_03: you can potentially de-risk focusing in that area first? Does that make sense? So one example is 01:01:03.199 --> 01:01:08.000 Unknown: for our medium and heavy duty vehicle electrification, we had that CEC funded roadmap 01:01:08.000 --> 01:01:12.800 Unknown: where we interviewed the top 100 commercial fleets to understand what their electrification 01:01:12.800 --> 01:01:16.320 SPEAKER_03: plans were for medium heavy duty vehicle electrification. Then we looked at it from 01:01:16.400 --> 01:01:20.960 SPEAKER_03: a distribution grid standpoint and said, okay, where are multiple fleets planning to electrify 01:01:20.960 --> 01:01:26.400 SPEAKER_03: on a certain timeframe and where are those spaces on our distribution grid and therefore what is the 01:01:26.960 --> 01:01:32.160 SPEAKER_03: distribution grid's ability to handle that capacity? So then it gives you some better 01:01:32.160 --> 01:01:37.200 SPEAKER_03: understanding of where to target because you're using both your customer information as well as 01:01:37.200 --> 01:01:44.080 SPEAKER_03: your distribution grid information. Some utilities, some IOUs have started doing that like proactive 01:01:44.079 --> 01:01:49.840 SPEAKER_03: grid investment. A lot of it was due to like EVs and now there's discussions about data centers. 01:01:49.840 --> 01:01:54.799 SPEAKER_03: But it was really about EVs starting. So Con Edison in New York, for example, has 01:01:54.799 --> 01:02:00.639 Unknown: CPUC approval to do some proactive investment. And it's those kinds of approaches that, you know, 01:02:00.639 --> 01:02:04.880 SPEAKER_03: starting with, you know, because your question is do we direct them to be like you should put this 01:02:04.880 --> 01:02:08.719 SPEAKER_03: here, you should put this here. I think our first step is, you know. I'm looking at it from the other 01:02:08.719 --> 01:02:13.679 SPEAKER_07: end of the telescope. Yeah. I think. When do we start to say to people, you know, that's really, 01:02:13.679 --> 01:02:17.919 SPEAKER_07: it's not going to work there very soon. That's probably, and I don't know if, you know, Laura 01:02:17.919 --> 01:02:22.959 SPEAKER_03: has any perspective or either Laura is like also certain areas are wanting to attract certain 01:02:22.959 --> 01:02:26.879 SPEAKER_03: businesses in that area and understanding what that is can be an opportunity as well. 01:02:27.919 --> 01:02:32.319 Unknown: Yeah, I think from a, if you're purely speaking about, Laura, sorry, Chief Executive Officer, 01:02:32.319 --> 01:02:37.439 SPEAKER_05: if you're purely speaking about electrification, I think most of the time that infrastructure is 01:02:37.440 --> 01:02:40.880 SPEAKER_05: already there in terms of you've got buildings and homes and they're electrifying, whether it's 01:02:40.880 --> 01:02:46.720 SPEAKER_05: their fleet or their homes or their businesses. And so I think in those cases, we really do want 01:02:46.720 --> 01:02:51.679 SPEAKER_05: to help in terms of reducing the emissions from buildings and transportation. So I don't think 01:02:51.679 --> 01:02:55.360 SPEAKER_05: we would be saying, no, you can't do this here. I think we're really just trying to figure out how 01:02:55.360 --> 01:03:00.400 SPEAKER_05: do we do it in a way that's cost effective and manage really that'll manage the charging of 01:03:00.400 --> 01:03:05.679 SPEAKER_05: electrification measures. So that way we're looking at making the most out of our existing system and 01:03:05.679 --> 01:03:14.799 SPEAKER_05: where we need to doing those upgrades. Thanks. I've got a quick question. I hope it's a quick 01:03:14.799 --> 01:03:22.399 SPEAKER_08: question. How much visibility do we have and how much, if any, control do we have over third-party 01:03:22.399 --> 01:03:28.079 SPEAKER_08: charging systems? So whether it's Tesla that just put in six or eight new handles at the grocery 01:03:28.079 --> 01:03:36.000 SPEAKER_08: store near my house or EVgo or Electrify America, do we have any visibility slash control over those 01:03:36.000 --> 01:03:43.759 SPEAKER_08: systems? In terms of managing their charging and things like that? Yeah. And potentially, I mean, 01:03:43.759 --> 01:03:50.319 SPEAKER_08: do we charge them more during peak hours? And then can we, I mean, if we're in some emergency 01:03:50.319 --> 01:03:56.159 SPEAKER_08: situation, can we turn those off or turn them down or do something? So we have our commercial 01:03:56.159 --> 01:04:01.839 SPEAKER_03: customer rate. So there's sort of price signals that are built in there. We are working on things 01:04:01.839 --> 01:04:07.679 SPEAKER_03: like fleet managed charging programs and working with that from our customers as well. We also 01:04:07.679 --> 01:04:12.719 SPEAKER_03: find that as the Teslas and the other public charging entities are going in, they're also 01:04:12.719 --> 01:04:17.759 SPEAKER_03: looking at those strategies from a dynamic pricing standpoint as well relative to kind of managing 01:04:17.759 --> 01:04:24.239 SPEAKER_03: what capacity they have access to as well as sending price signals to their customers as well. 01:04:25.039 --> 01:04:30.719 Unknown: But we don't have the ability currently, technically, at least to, oh, gee, there's 01:04:30.719 --> 01:04:35.359 SPEAKER_08: six cars plugged in over there at a location that's about to overload. We can't turn them off. 01:04:35.919 --> 01:04:42.239 SPEAKER_03: We currently do not have a, we don't have a program offering that does that, but we are looking at those 01:04:42.239 --> 01:04:47.519 SPEAKER_03: opportunities. Okay. Thank you. I think just to add to that too, we do get applications. So if it's a new 01:04:48.399 --> 01:04:52.879 SPEAKER_05: connection for new chargers that are going in, like Tesla's putting in a new 01:04:52.880 --> 01:04:58.320 SPEAKER_05: charging station, we would get an application for service there. So then the system studies that are 01:04:58.320 --> 01:05:04.240 SPEAKER_05: done in distribution planning actually looks to make sure that we can serve those customers or 01:05:04.240 --> 01:05:09.680 SPEAKER_05: those charging stations. So it protects our system from, we wouldn't have it connected if we weren't 01:05:09.680 --> 01:05:14.079 SPEAKER_05: able to serve it. Right, exactly. And then we've also looked at flexible connection opportunities 01:05:14.079 --> 01:05:18.640 SPEAKER_03: too if someone wants eventual capacity but are willing to provide some flexibility up front to 01:05:18.639 --> 01:05:23.679 SPEAKER_03: get them from a speed standpoint. Thank you. Director Rose. 01:05:26.480 --> 01:05:30.159 Unknown: One of the things as Director Kirth was having that discussion is 01:05:31.599 --> 01:05:38.079 SPEAKER_06: what is the risk of AI, data center, large load interconnection, right? It's adding in 01:05:38.879 --> 01:05:46.239 SPEAKER_06: transportation electrification, a couple of megawatts here, a few megawatts or even kilowatts. 01:05:46.319 --> 01:05:52.479 SPEAKER_06: The grid has the capacity to handle that. It's not been a problem. But if you start dropping in 01:05:53.359 --> 01:06:00.879 SPEAKER_06: 20 or 50 plus megawatts, how much is that going to suck up? And is there going to be 01:06:00.879 --> 01:06:05.439 SPEAKER_06: delineation between our secondary and primary services that I should worry about? Or are we 01:06:05.439 --> 01:06:09.199 SPEAKER_06: going to jump in a couple of data centers and all of a sudden the distribution grid is going to be 01:06:09.199 --> 01:06:13.599 SPEAKER_06: completely congested and now the little stuff, the day-to-day little stuff is going to become 01:06:13.599 --> 01:06:21.440 SPEAKER_06: problematic? So it's the same process. If we had a data center that was coming and asking for 01:06:21.440 --> 01:06:25.839 SPEAKER_05: service, they would do an application for service. There are system studies that are done within 01:06:25.839 --> 01:06:30.079 SPEAKER_05: distribution planning and transmission planning if it needs to go on the transmission side. 01:06:30.079 --> 01:06:34.960 SPEAKER_05: That would inform us on what upgrades are needed in order to support that load. And they wouldn't 01:06:34.960 --> 01:06:41.839 SPEAKER_05: get connected until we were able to support. I know in our process today, we do recoup those 01:06:41.840 --> 01:06:47.280 SPEAKER_05: infrastructure costs in terms of from a commercial customer who's installing or who's 01:06:47.280 --> 01:06:52.960 SPEAKER_05: signing up for new service. We also are working towards having the large load policy that the 01:06:52.960 --> 01:07:01.280 SPEAKER_05: board's instructed us on. As we progress into the IRP and large load, if it's possible to find a 01:07:01.280 --> 01:07:11.360 SPEAKER_06: balancing act there between making sure that we're not going to, I guess, sell a resource that's not 01:07:11.440 --> 01:07:17.280 SPEAKER_06: available to someone smaller who wants a little piece of that to do their project. So I definitely 01:07:17.280 --> 01:07:22.079 SPEAKER_06: think there will be a balance there. We'll try to figure that out. One person doesn't come in and 01:07:22.079 --> 01:07:28.000 SPEAKER_06: take up all the bandwidth. So it'll be an ongoing discussion for the next six months. 01:07:28.000 --> 01:07:30.160 SPEAKER_06: President DeMile. 01:07:30.960 --> 01:07:36.960 Unknown: Yeah. Thank you. So, Amandeep, this one's for you. It's your last slide and the last box. 01:07:37.920 --> 01:07:43.840 SPEAKER_09: Talking about uncertainty and that's certainly throughout this whole presentation. So 01:07:45.360 --> 01:07:52.800 SPEAKER_09: clearly there's a range of potential futures, but what kinds of things would we be doing to 01:07:52.800 --> 01:07:58.159 SPEAKER_09: maintain our flexibility and to have adaptive strategies and what kind of things, 01:07:59.679 --> 01:08:04.960 Unknown: how would we be looking at the grid and how things are changing? 01:08:07.679 --> 01:08:13.440 Unknown: And what kind of lead times do we anticipate to be able to make, oh, it's like, oh, well, 01:08:13.440 --> 01:08:20.880 SPEAKER_09: we didn't plan this one quite right. What kind of lead time do we think we're going to be able to 01:08:22.880 --> 01:08:31.199 SPEAKER_09: maintain? It's a combination of things, right? We plan, like I mentioned, we plan in two-year 01:08:31.199 --> 01:08:36.960 SPEAKER_02: cycles and we plan in five-year cycles. And we plan annually as well. So when we look at our grid 01:08:37.840 --> 01:08:43.920 SPEAKER_02: as a whole on the distribution side, we take a look at that annually to see where we stand. And 01:08:43.920 --> 01:08:50.399 SPEAKER_02: then we also do the biannual or every two years as well. Based on that, we identify where 01:08:51.119 --> 01:08:56.880 SPEAKER_02: the shortcomings are. And we're constantly also looking at some of these other non-wire solutions 01:08:56.880 --> 01:09:04.079 SPEAKER_02: as well, right? We're looking at the pilots for various of these non-wire solutions. Non-wire 01:09:04.079 --> 01:09:12.560 SPEAKER_02: solutions are your non-traditional, whether you could install a battery, whether you could install 01:09:12.560 --> 01:09:19.279 SPEAKER_02: a DER, or you could work with our customers to participate in load management. So we're 01:09:19.279 --> 01:09:23.760 SPEAKER_02: constantly looking at that. But as far as the lead time is concerned, I think our planning studies, 01:09:24.239 --> 01:09:29.840 Unknown: they define what those lead times are. Because we're looking constantly five years ahead on the 01:09:29.840 --> 01:09:35.760 SPEAKER_02: distribution side and 10 years plus ahead on the transmission side. So we're always ahead of the 01:09:35.760 --> 01:09:43.760 SPEAKER_02: game. And with our new tools, we could run scenario analysis on different of these scenarios to see 01:09:44.560 --> 01:09:49.760 SPEAKER_02: how our grid is going to be in the next five years, in the next 10 years. So that's what we do. So 01:09:50.400 --> 01:09:52.960 SPEAKER_02: we're going to be doing the scenario analysis moving forward. 01:09:55.280 --> 01:09:59.840 Unknown: Then that actually strikes me as one of the advantages of being able to target 01:10:01.119 --> 01:10:07.440 SPEAKER_09: some of our customer programs. And those could be, especially if we know how successful they are in 01:10:07.440 --> 01:10:14.720 SPEAKER_09: the areas that have received the targeting, if it's appropriate to target them to other places 01:10:14.720 --> 01:10:21.840 SPEAKER_09: that are going to be, that are approaching problem status. Does that capture that? 01:10:21.840 --> 01:10:26.720 SPEAKER_09: Yeah. And I think that's one of those opportunities, right? Like there's a lot that goes into it, 01:10:26.720 --> 01:10:30.720 SPEAKER_03: as we've talked about you wanting to make sure they show up, the validation, the cost effectiveness, 01:10:30.720 --> 01:10:36.720 SPEAKER_03: all of those pieces. But by able to tap into that fleet of customers, you've got flexibility, 01:10:36.720 --> 01:10:41.360 SPEAKER_03: right? And if you can do that in targeted ways, you don't have to pay for, you know, 01:10:41.359 --> 01:10:47.039 SPEAKER_03: dispatching all of it. You could pay for potentially because there's added value to dispatch 01:10:47.039 --> 01:10:52.559 SPEAKER_03: in specific geographical locations. And we're starting to see that already. We had Orange 01:10:52.559 --> 01:10:57.519 SPEAKER_03: Vale substation work going on. And so how do we dispatch the fleet for my energy optimizer, 01:10:57.519 --> 01:11:01.119 SPEAKER_03: partner plus battery storage systems, for example? So, yeah. 01:11:06.319 --> 01:11:11.199 SPEAKER_08: Well, thank you, Rachel, Nikayla, and Amandeep. I really appreciate the information. I've always 01:11:11.199 --> 01:11:17.519 SPEAKER_08: said SMUD staff is so good at keeping the lights on on a day-to-day basis that we have the luxury 01:11:17.519 --> 01:11:24.479 SPEAKER_08: of being able to look at these 4, 5, 6, 10-year, 20-year plans. And so this was a luxury. Thank 01:11:24.479 --> 01:11:30.880 SPEAKER_08: you. We appreciate it. I have one card from somebody in our audience who wishes to speak on this item, 01:11:30.880 --> 01:11:31.679 SPEAKER_08: Mr. Weber. 01:11:32.640 --> 01:11:40.480 Unknown: Good evening, Chairman, Board, and committee. Thank you for the integrated distribution resource 01:11:40.480 --> 01:11:48.079 SPEAKER_01: plan presentation. I found it interesting. I assume this will be part of the IRP. Speaking of IRP, 01:11:48.079 --> 01:11:54.720 SPEAKER_01: I'm wondering how stakeholders in the public will play a role in its development. I'm used to a 01:11:55.199 --> 01:12:02.159 SPEAKER_01: robust public involvement and transparency in the development of an IRP. I will read an example. 01:12:02.159 --> 01:12:08.880 SPEAKER_01: September 8, 2026, Idaho Power employees and members of a public advisory council will meet 01:12:08.880 --> 01:12:16.000 SPEAKER_01: Thursday, September 10 to discuss key elements that will drive the utility's 20-year energy plan. 01:12:16.000 --> 01:12:22.159 SPEAKER_01: It will be the first monthly meeting of the company's 2027 integrative resource plan 01:12:22.479 --> 01:12:29.760 SPEAKER_01: advisory council called IRPAC. The company produces an integrative resource plan, IRP, 01:12:29.760 --> 01:12:37.279 SPEAKER_01: every two years and intends to submit its 2027 plan to regulators in June. The virtual IRPAC 01:12:37.279 --> 01:12:42.880 Unknown: meetings are open to the public. Thursday's meeting will provide an overview of the process 01:12:42.880 --> 01:12:49.840 SPEAKER_01: and a recap of the 2025 IRP updates about the company's resource acquisition process, 01:12:50.159 --> 01:12:55.920 SPEAKER_01: the proposed sale of Idaho Power's Oregon service area, and a look at the past summer's energy use 01:12:55.920 --> 01:13:01.680 SPEAKER_01: are also on the agenda. Background information and a link for attending via WebEx are available 01:13:01.680 --> 01:13:09.680 SPEAKER_01: at idahoapower.com slash IRP. Meetings begin at 9 a.m. Mountain Time. The IRPAC is a volunteer 01:13:09.680 --> 01:13:15.920 SPEAKER_01: panel that will meet with Idaho Power staff several times over a period of months to discuss 01:13:15.920 --> 01:13:22.640 SPEAKER_01: the 2027 integrative resource plan, which will play out the company's preferred portfolio of 01:13:22.640 --> 01:13:29.760 SPEAKER_01: energy resources to serve customers over the next 20 years. The IRPAC includes representatives from 01:13:29.760 --> 01:13:36.560 SPEAKER_01: public interest groups, industry and agriculture as well as the state and local lawmakers, 01:13:36.560 --> 01:13:42.159 SPEAKER_01: public utility commission staff and other interested parties. The advisory council provides 01:13:42.399 --> 01:13:50.319 SPEAKER_01: public input and feedback that assists the company in the creation of the 2027 IRP. I 01:13:50.319 --> 01:13:59.119 SPEAKER_01: participated in Idaho Power's IRPs from 2006 until 2013. What will be the format for SMUD's 01:13:59.119 --> 01:14:07.359 SPEAKER_01: 2027 IRP? Thank you. Thank you. Laura, can we ask somebody from staff to get back to Mr. Webber and 01:14:08.239 --> 01:14:13.199 SPEAKER_08: with some idea of what our communications and outreach strategy is going to be for the IRP. 01:14:13.199 --> 01:14:19.359 SPEAKER_08: Thank you. Do we have anybody online who wishes to speak on our agenda item? 01:14:27.199 --> 01:14:34.479 Unknown: Do not see any hands now. Okay. And the next item on the agenda is for public comment for items not 01:14:34.479 --> 01:14:38.799 SPEAKER_08: on the agenda. And Mr. Webber, you wish to speak on that as well. 01:14:42.319 --> 01:14:49.199 Unknown: Yes, thank you. Good evening, Chairman, board and committee. I've been a SMUD superfan for decades. 01:14:49.199 --> 01:14:54.799 SPEAKER_01: I could have lived anywhere but chose here in part because of being in SMUD's service territory. 01:14:54.799 --> 01:15:02.079 SPEAKER_01: The 2030 zero carbon commitment was a big draw. SMUD's website states the following promise, 01:15:02.079 --> 01:15:09.439 SPEAKER_01: low rates, reliable service, carbon free energy by 2030. We're going all in to provide 100% 01:15:10.000 --> 01:15:17.359 SPEAKER_01: carbon free power by 2030. Our 2030 zero carbon vision continues this commitment. 01:15:18.479 --> 01:15:23.039 SPEAKER_01: Webster's defines commitment as an agreement or pledge to do something in the future. 01:15:23.600 --> 01:15:28.720 SPEAKER_01: This is different than a goal which is defined as the end toward which an effort is directed. 01:15:29.360 --> 01:15:34.480 SPEAKER_01: In last month's committee and board meetings, it sounded like there was a shift in the messaging 01:15:35.280 --> 01:15:42.560 SPEAKER_01: from the 2030 zero carbon commitment to a goal. And it didn't sound like that goal would be achieved. 01:15:43.280 --> 01:15:51.680 SPEAKER_01: I would suggest that the 2030 zero carbon commitment be replaced with a 2035 95% renewable 01:15:51.680 --> 01:15:59.039 SPEAKER_01: generation goal. My reasoning is negative messaging often fails. Messaging needs to be 01:15:59.039 --> 01:16:05.200 SPEAKER_01: for what you want, not what you don't want. When you commit to a partner, you don't say 01:16:05.200 --> 01:16:11.520 SPEAKER_01: zero cheating. You say always faithful. You focus on what you want, not what you don't want. 01:16:12.079 --> 01:16:20.800 Unknown: We want renewable generation. We need milestones to achieve the goal along the way. 90% by 2030 01:16:20.800 --> 01:16:28.400 SPEAKER_01: and 1% more every year. Without milestones, goals are unlikely to be met. If you want to run a 100 01:16:28.400 --> 01:16:34.480 SPEAKER_01: mile race in one year, you would want to set milestones along the way. 25 miles after three 01:16:34.480 --> 01:16:41.440 SPEAKER_01: months, 50 miles after six months, 75 miles in nine months. Please consider my suggestion for a 01:16:41.440 --> 01:16:48.159 SPEAKER_01: positive achievable goal with milestones along the way. We do have a big tailwind since the plug-in 01:16:48.159 --> 01:16:53.439 SPEAKER_01: solar bill was signed. If we could get a couple hundred thousand owners and renters to install 01:16:53.439 --> 01:17:00.239 SPEAKER_01: 500 watts of solar each, that adds up to 100 megawatts of solar on the system without any 01:17:00.239 --> 01:17:06.720 SPEAKER_01: transmission upgrades or cost rate pairs. If we could encourage people to install west facing 01:17:06.720 --> 01:17:12.319 SPEAKER_01: panels, we could save millions of dollars on storage. I have faith that SMUD employees can 01:17:12.319 --> 01:17:17.119 SPEAKER_01: achieve the goals working with the board and the public. Thank you. Thank you, Mr. Weber. 01:17:18.319 --> 01:17:22.559 SPEAKER_08: Chief legal officer, do we have anybody online who wishes to speak on items not on the agenda? 01:17:24.159 --> 01:17:29.760 Unknown: No, we do not. And then our last item is to provide a summary of committee direction. 01:17:32.399 --> 01:17:36.559 Unknown: The only thing I have is that we'll follow up with John Weber on information related to the public 01:17:36.559 --> 01:17:43.199 SPEAKER_04: process that we'll use for the RIRP. Great. Thank you. Having reached the end of our agenda, 01:17:43.199 --> 01:17:45.039 SPEAKER_08: seeing no more business, this meeting is adjourned. 01:17:48.159 --> 01:17:50.159 Unknown: Thank you.