Energy Resources Customer Services Sep 16 2026

Unknown: take care guys..

Unknown: Thank you.

Unknown: We are back to the public.

Unknown: So I will try to get back to the public.

Unknown: Thank you.

Unknown: You're welcome.

Unknown: Thank you.

Unknown: Thank you.

SPEAKER_04: Thank you.

SPEAKER_04: Thank you.

SPEAKER_04: Thank you.

SPEAKER_04: Thank you.

SPEAKER_04: Thank you.

Unknown: Thank you.

SPEAKER_04: Thank you and thank you for your support.

SPEAKER_04: Thank you.

SPEAKER_04: speakers request form located on the table outside this room and handed to security.

SPEAKER_04: Members of the public attending this meeting virtually that wish to provide verbal comments

SPEAKER_04: during committee may do so by using the raise hand feature in Zoom.

SPEAKER_04: At the time, public comment is called.

SPEAKER_04: Technical support staff will enable the audio for you when your name is announced during

SPEAKER_04: the public comment period.

SPEAKER_04: You may also submit written comments by emailing newpubliccomment.org.

SPEAKER_04: Written comments will not be read into the record but will be provided to the board

SPEAKER_04: electronically and placed into the record of the meeting if received within two hours

SPEAKER_04: after the meeting ends.

SPEAKER_04: Chief legal officer, please conduct the roll call.

Unknown: Director Sanborn?

Unknown: Director Bishman?

SPEAKER_02: Here.

SPEAKER_04: Chair Buettomson?

SPEAKER_02: Present.

SPEAKER_02: Director Bishman and Chair Buettomson are present.

SPEAKER_02: Director Sanborn is absent.

SPEAKER_02: Also present are directors Rose, Herver and present tonight.

SPEAKER_04: Thank you.

SPEAKER_04: And tonight's agenda is to provide the board an update on the status of customer programs

SPEAKER_04: under the 2030 zero carbon plan.

SPEAKER_04: Our presenter, Rach Wong, the director of distributed energy solutions will be presenting

SPEAKER_04: this evening.

Unknown: Thank you.

SPEAKER_01: Distributed energy solutions.

SPEAKER_01: Tonight I'm going to be giving you an update on SMUD's customer programs and initiatives

SPEAKER_01: relative to the zero carbon plan.

SPEAKER_01: Before I dive in, I really do want to take some time to acknowledge the efforts of all

SPEAKER_01: the staff that really help contribute towards delivering our zero carbon plan customer programs.

SPEAKER_01: The distributed energy solutions team definitely leads the work.

SPEAKER_01: But the work that we do actually touches probably almost every single organization within SMUD.

SPEAKER_01: So it would be impossible to thank everybody by name.

SPEAKER_01: But I just wanted to acknowledge all that help support offering these customers for

SPEAKER_01: our program as well as the leadership of the distributed energy solutions team to be

SPEAKER_01: able to deliver them.

SPEAKER_01: Thank you.

SPEAKER_01: Next slide.

SPEAKER_01: Next slide.

SPEAKER_01: So the board is all familiar with this slide.

SPEAKER_01: It's just a reminder of what SMUD's customer programs and how they play a role in multiple

SPEAKER_01: aspects of our zero carbon plan.

SPEAKER_01: We expand clean technology through the renewable offerings of our green pricing offerings.

SPEAKER_01: We pilot and scale new technology and business models with our virtual power plant offerings.

SPEAKER_01: We are pursuing grants and partnerships to get external funding and support to stack

SPEAKER_01: those financial offerings with our program offerings to keep rates affordable for our

SPEAKER_01: customers and our community.

SPEAKER_01: And we maximize those customer and community benefits to ensure that all of our customers

SPEAKER_01: have an opportunity to participate in the zero carbon plan vision.

SPEAKER_01: In addition to our own emissions, our building and transportation electrification programs

SPEAKER_01: help support local decarbonization and improve air quality as Dr. Ayala talked about last

SPEAKER_01: week in his presentation.

SPEAKER_01: Next slide.

SPEAKER_01: So as I've mentioned in previous board updates for the customer programs for the zero carbon

SPEAKER_01: plan, our customer zero carbon plan programs are generally grouped into these four portfolios

SPEAKER_01: that you see here below.

SPEAKER_01: I'll describe each portfolio in more detail on the slides that follow, but I do want to

SPEAKER_01: give some additional context.

SPEAKER_01: So the first is that while the programs and projects in each portfolio are included based

SPEAKER_01: upon their primary goals and objectives, we do strive to offer solutions that can work

SPEAKER_01: across multiple portfolios when working with customers.

SPEAKER_01: Because as you think about it, customers often adopt multiple technologies.

SPEAKER_01: And so we do have projects that tap into different programs and different portfolios, and we

SPEAKER_01: really shape that to best meet our customers' needs.

SPEAKER_01: There's also a theme that you're going to hear from me tonight, and maybe I'll start

SPEAKER_01: getting repetitive, but as I share our progress for each of the portfolios, the reality is

SPEAKER_01: is that we are facing a lot of external headwinds.

SPEAKER_01: We've been taking measures to support that participation, but we're also ensuring that

SPEAKER_01: we're managing the incentives to the value that SMUD gets in investing in these different

SPEAKER_01: technologies and customer adoption to ensure that we maintain affordability and low rates

SPEAKER_01: for all of our SMUD customers.

SPEAKER_01: As such, as you know from some of the different communications of the board, but as I'll also

SPEAKER_01: be talking about, while we have increased incentives in certain areas, we haven't been

SPEAKER_01: able to come close to making up the difference in what we've lost in external funding sources

Unknown: that we can stack on top of SMUD's incentives.

SPEAKER_01: And we've also been working on evolving SMUD's program designs to best align where there's

SPEAKER_01: value that we can share between SMUD and our customers so that we can pass that value onto

SPEAKER_01: our customers in helping them manage their energy bills.

SPEAKER_01: Next slide.

SPEAKER_01: So first, building electrification and energy efficiency.

SPEAKER_01: You've heard me say this many times before.

SPEAKER_01: The lowest hanging fruit for greenhouse gas emissions reduction are transportations and

SPEAKER_01: buildings.

SPEAKER_01: Buildings are actually the second largest source.

SPEAKER_01: As such, as we decarbonize our energy supply, we not only support the decarbonization of

SPEAKER_01: buildings, but we actually eliminate direct combustion of fossil fuels.

SPEAKER_01: We improve efficiency through the electric equipment.

SPEAKER_01: And because our electricity rates are much lower compared to PG&E's gas rates and their

SPEAKER_01: expected growth and their expected rate trajectory growth, building electrification is also the

SPEAKER_01: best way for our customers to save on their total energy expenditures.

SPEAKER_01: And I'll go into more detail at the end of my presentation.

SPEAKER_01: So as we shift our customers to efficient electric appliances, we actually are complementing

SPEAKER_01: our supply-side renewable energy commitments and help our customers achieve carbon savings,

SPEAKER_01: both by increasing their use of cleaner power from our energy portfolio, but also in reducing

SPEAKER_01: the use of fossil fuels within their homes and their transportation.

SPEAKER_01: Okay.

SPEAKER_01: Next slide.

SPEAKER_01: So this shows the progress of our achievement of our building electrification goals.

SPEAKER_01: On the left-hand side is our annual goals on a month-by-month basis for 2026.

SPEAKER_01: And on the right, you see the trajectory that was developed by the zero carbon plan and

SPEAKER_01: how we're doing on an annual basis.

SPEAKER_01: And then I'll also start by reminding all of you how we calculate this metric of all

SPEAKER_01: electric equivalent homes.

SPEAKER_01: It doesn't mean that every single home has to be electrified to count.

SPEAKER_01: What it considers is the impact of electrifying individual devices, so heat pump water heaters,

SPEAKER_01: heat pump space heaters, for example, and the aggregated impact at the community level.

SPEAKER_01: This metric is the combination of commercial and residential accounts, so we translate

SPEAKER_01: these measures into the equivalent using 3,300 kilowatt hours as an equivalent home.

SPEAKER_01: So for our 2030 goals, we're striving to add 112,000 equivalent all-electric homes by 2030.

SPEAKER_01: That gives us that total of 154,000 because we started with a baseline of all-electric

SPEAKER_01: homes when we started our journey in our service territory.

SPEAKER_01: And also note that a commercial building could be as many as multiple equivalent all-electric

SPEAKER_01: homes because of the magnitude of the measures.

SPEAKER_01: So last year, I did give a little bit of foreshadowing, and I shared that while we didn't meet our

SPEAKER_01: 2025 annual goals, we still met, in most cases across our portfolio, our ZCP trajectory in

SPEAKER_01: that specific year, which is the graph on the right.

SPEAKER_01: I also foreshadowed that this year would be quite challenging in order to hit our goals,

SPEAKER_01: even though we were ahead of our ZCP trajectory goals given the curve, right?

SPEAKER_01: So we were kind of starting out slow, and then we were starting to be on the curve that's

SPEAKER_01: curving up.

SPEAKER_01: And unfortunately, while the team has worked very diligently to try to get as close to

SPEAKER_01: the goals as possible, we are expected to meet our annual goal as well as our 2026 ZCP

SPEAKER_01: trajectory goal this year.

SPEAKER_01: We are facing a lot of headwinds, and you'll hear me say this a lot.

SPEAKER_01: The federal tax credit for energy efficiency and building electrification expired at the

SPEAKER_01: end of the year, and statewide funding that actually got some flow down in funding from

SPEAKER_01: the federal government was cut.

SPEAKER_01: And then we're also facing a pretty volatile economy, and so customers are holding back

SPEAKER_01: on making large financial investments if that's not really critical.

SPEAKER_01: So recognizing these headwinds, we will be undertaking goal updates in conjunction with

SPEAKER_01: the development of the integrated resources plan, which we'll be starting shortly.

SPEAKER_01: And we've been modeling scenarios and evaluating BE and EE targets, doing that analysis through

SPEAKER_01: 2027.

SPEAKER_01: And what we will be doing is coming back to the board as part of the SD9 update following

SPEAKER_01: the IRP for a recommendation to the board on revisions to SD9.

SPEAKER_01: Next slide.

SPEAKER_01: So despite the outlook of coming in short of our goals overall for the portfolio, there

SPEAKER_01: are still some bright spots to highlight.

SPEAKER_01: So our Advanced Home Solutions Program, which is our residential retrofit program, is forecasted

SPEAKER_01: to exceed 30,000 cumulative heat pump installations by third quarter of this year.

SPEAKER_01: This includes more than 22,500 heat pump space heaters and over 7,500 heat pump water heaters

SPEAKER_01: that have been installed since our program inception in 2018.

SPEAKER_01: You'll see that we're actually forecasting to exceed our heat pump water heater goals

SPEAKER_01: for the year, as well as meet our income-qualified home electrification retrofits.

SPEAKER_01: You do know also that we did increase our incentives across the board for both residential

SPEAKER_01: and commercial programs this year to help support adoption, especially as we heard about

SPEAKER_01: the pullback in federal funding.

SPEAKER_01: We had decreased the incentives actually starting last year in recognition that we could stack

SPEAKER_01: incentives but with the pullback in federal funding.

SPEAKER_01: We chose to increase incentives at the beginning of this year for residential and have added

SPEAKER_01: some additional increases throughout the year.

SPEAKER_01: We had lost federal funding.

SPEAKER_01: We had pauses in statewide funding, including tech funding that was significant in the thousands

SPEAKER_01: of dollars.

SPEAKER_01: And even though we increased incentives by $500 for most of our programs, there was no

SPEAKER_01: way financially that we could make that gap that we lost from the external sources of

SPEAKER_01: fundings that we could stack.

SPEAKER_01: So, well, our most recent incentive increased with both increasing incentives as well as

SPEAKER_01: increasing the cap for our multifamily building electrification.

SPEAKER_01: So recognizing that as we think of multifamily was a key sector that we want to help electrify,

SPEAKER_01: making sure that that's aligned as well.

SPEAKER_01: And while losing external funding sources has been a challenge, we are actually still

SPEAKER_01: seeing year-over-year increases in project volume, even if they're not to the extent

SPEAKER_01: that we planned.

SPEAKER_01: So in addition to incentives, we have continued to develop and offer tools to support our

SPEAKER_01: customers and help them make the decision to electrify.

SPEAKER_01: At the end of last year, after the board presentation, we launched the Zero Home tool.

SPEAKER_01: It's a free online tool that provides our residential customers the ability to model

SPEAKER_01: their homes' current energy use and identify potential cost savings from electrification

SPEAKER_01: and energy efficiency upgrades.

SPEAKER_01: Customers can view their homes' current carbon footprint and energy usage.

SPEAKER_01: They actually don't have to authenticate.

SPEAKER_01: They just plug in their home address.

SPEAKER_01: They can choose from a menu of electrification upgrades to see the rebates and incentives

SPEAKER_01: available to estimate their out-of-pocket costs, as well as their future energy bill

SPEAKER_01: savings.

SPEAKER_01: We're also working on developing an enhanced contractor tool with the Zero Home to be able

SPEAKER_01: to make it easy for customers that as they see this analysis, if they want to take action

SPEAKER_01: to be able to access information about contractors that can help them take those actions, as

SPEAKER_01: well as we're talking to Zero Home about a version of the customer tool that they've

SPEAKER_01: designed for tenants and property owners of multifamily buildings.

Unknown: Dr. Webster and our reporter spoke to you about SMUD's Community Impact Plan and the

SPEAKER_01: income-qualified efforts in August.

SPEAKER_01: So I'm not going to reiterate those.

SPEAKER_01: But I did want to highlight the Garden Land Northgate Neighborhood Association, which

SPEAKER_01: you often hear is GNNA, effort.

SPEAKER_01: And they've successfully completed 16 projects and have 16 projects in flight.

SPEAKER_01: We've gotten part of the federal ARPA grant reimbursement for the Community Impact Plan

SPEAKER_01: efforts and expect to receive full reimbursement.

SPEAKER_01: So back to the piece about grant funding and additional funding to support our efforts.

SPEAKER_01: We've also updated our definition as of July of what we consider an active contractor within

SPEAKER_01: our contractor network to be one that completed three measures of that type within the last

SPEAKER_01: 90 days.

SPEAKER_01: This ensures that customers that are searching for contractors to do a certain measure, that

SPEAKER_01: they are getting contractors recommended to them that have completed the relevant work

SPEAKER_01: recently, as well as it helps encourage contractors to do jobs in the measures that we're incentivizing

SPEAKER_01: and promoting.

SPEAKER_01: Looking ahead, to both help our customers mitigate grid impacts, as well as helping

SPEAKER_01: support our customers who need to replace things like Zinsco panels, we are working

SPEAKER_01: on incentives for residential smart panels and meter-collar devices.

SPEAKER_01: Our R&D team is working on pilots to both income customers as well as market rate customers

SPEAKER_01: to validate savings estimates, as well as benefits from advanced load management to

SPEAKER_01: help support those incentive levels.

SPEAKER_01: We're working to address that classic challenge with regards to water heater replacements

SPEAKER_01: in emergencies by developing an emergency heat pump water heater replacement offering

SPEAKER_01: that we hope to launch early next year.

SPEAKER_01: I know the board's been very interested in the status of the RFP and the solicitation

SPEAKER_01: for a new vendor for our complete energy solutions.

SPEAKER_01: We launched that in the summer.

SPEAKER_01: The team is actually currently evaluating the bids and is preparing for demos by the

SPEAKER_01: bidders, I think, in the next couple weeks.

SPEAKER_01: We expect to bring that contract to the board early next year.

SPEAKER_01: And then finally, we've been closely tracking the CPUC's efforts and communicating with

SPEAKER_01: staff at PG&E for consideration of opportunities under SB 1221 projects.

SPEAKER_01: So that's the legislation that where if more if it's more cost effective to electrify

SPEAKER_01: than upgrade aging infrastructure, allocating funds to help support building electrification

SPEAKER_01: instead.

SPEAKER_01: And so the latest information from the CPUC in July helped narrow down that actually some

SPEAKER_01: of these pockets of locations are with customers in that 6 to 20 range.

SPEAKER_01: So the requirement of needing at least two-thirds of the customers to be aligned to do the work

SPEAKER_01: is a little bit mitigated in terms of risk because the numbers of customers that we're

SPEAKER_01: talking on are much smaller.

SPEAKER_01: It's not a huge base.

SPEAKER_01: And looking at some of the different target areas for that.

SPEAKER_01: Next slide, please.

Unknown: Yes.

SPEAKER_01: All right.

SPEAKER_05: Oh, go ahead.

SPEAKER_05: I thought briefly earlier.

SPEAKER_05: Maybe I won't say anything, but that's not going to happen.

SPEAKER_01: What's not going to happen?

SPEAKER_01: SB 1221, is that going to happen?

SPEAKER_01: Can I tell you that?

SPEAKER_01: I'm going to ask a couple of questions though.

SPEAKER_05: I guess the first one, it was related to the state and federal like HVAC and water heater

SPEAKER_05: and conversion to electrification, both tax credits and grants.

SPEAKER_05: I know the one big beautiful bill killed a whole slew of that funding.

SPEAKER_05: Is there anything currently like opened or approved at either the state or federal level?

SPEAKER_05: The tech funding has been coming in and out.

SPEAKER_01: And so that's been feedback back to the state relative to both for customers and for contractors

SPEAKER_01: to have some more predictability instead of this like tech funding is available and then

SPEAKER_01: tech funding is not available.

SPEAKER_01: You would have to run those programs.

SPEAKER_05: But the state's notorious, I mean I run a program for the state.

SPEAKER_05: It's notorious for coming and going as things fill up.

SPEAKER_01: Yeah.

SPEAKER_01: So that's been one that theoretically can still be available as more funding is available.

SPEAKER_01: But the main ones, and I think I had done a presentation to the board last year with

SPEAKER_01: regards to our potential study and an update on building electrification.

SPEAKER_01: And you may recall that, like I said, even though we are bumping up incentives by $500

SPEAKER_01: or even $1,000 in certain areas or lifting caps, we're losing thousands of dollars through

SPEAKER_01: that external funding.

SPEAKER_01: So it's very challenging to make up.

SPEAKER_01: Plus we're seeing increased costs, right, between tariffs and things like that.

SPEAKER_01: We're seeing increased costs as well.

SPEAKER_05: It's in my mind.

SPEAKER_05: What does that, I guess what does that elasticity looks like as those dollars disappear and

SPEAKER_05: the cost of the projects go up?

SPEAKER_05: I guess how many are we losing because of the outside influences?

SPEAKER_05: Like we bumped our incentive up.

SPEAKER_05: We can't make up for a 30% federal tax credit or $3,000 from state funding.

SPEAKER_01: I think there's a couple things to remember.

SPEAKER_01: One is, and I'll get into this a little bit closer to the end of the presentation, but

SPEAKER_01: Tech actually did some analysis and we tacked onto it with our EM&V team and actually identified

SPEAKER_01: that in SMUD territory, I've given you estimates in the past of how much customers can save

SPEAKER_01: by going to building electrification and actually that EM&V study reinforced that actually

SPEAKER_01: customers can save even more than what we thought.

SPEAKER_01: So we're still well positioned in terms of building electrification being a very wise

SPEAKER_01: investment for our customers and probably one of the best ways to help our customers

SPEAKER_01: save on their electricity bill.

SPEAKER_01: It's just really that trajectory, right?

SPEAKER_01: Like that really aggressive exponential growth trajectory is really what we need to really

SPEAKER_01: consider and rethink.

SPEAKER_01: And I think that's something, as I mentioned, as we look at revising SD9, I think that those

SPEAKER_01: are conversations we need to have as part of our integrated resources planning process.

SPEAKER_01: Not that the IRP analysis identifies what that should be, but I think that's part of

SPEAKER_01: that stakeholder and board conversation about how we think about electrification and what

SPEAKER_01: those goals are.

SPEAKER_01: We're still well positioned and it is still beneficial to our customers.

SPEAKER_01: I think the key is just not that exponential aggressive trajectory is really what we should

SPEAKER_01: be looking at.

Unknown: Okay.

Unknown: Rachel, another question is really more about rates, so I don't think we can get an answer

SPEAKER_06: or not.

SPEAKER_06: We only give – so we give incentives to people who buy a new appliance, if it's

SPEAKER_06: an electric appliance, but we only give a rate relief if their home is all electric,

SPEAKER_01: when you say rate relief, what do you mean?

SPEAKER_06: We offer an all-electric rate, right?

SPEAKER_06: No.

SPEAKER_06: Oh, well, okay.

SPEAKER_06: We don't anymore.

SPEAKER_06: I'm not sure when the whole controversy went down.

SPEAKER_06: Okay.

Unknown: Wait, Jennifer, do you want to chime in?

SPEAKER_04: We used to.

SPEAKER_04: We went against our ads, but oh, okay.

SPEAKER_06: Well, then my mistake, I thought we did.

SPEAKER_06: So my question is moot, never mind.

Unknown: Yeah, no, we didn't.

Unknown: Okay.

Unknown: Yeah, we used to.

SPEAKER_05: We used to.

SPEAKER_05: I think it came off about 2017.

SPEAKER_05: Rachel, the other thing on the previous slide you had – and you mentioned this, the smart

SPEAKER_05: panel.

SPEAKER_05: Yes.

SPEAKER_05: The smart panel and meter coloring.

SPEAKER_05: Can you maybe elaborate a little bit on the timing and development and what the current

SPEAKER_05: thinking is we might have a product available?

SPEAKER_01: Sure.

SPEAKER_01: So we are working – the team has been working to move as quickly as possible to be able

SPEAKER_01: to offer an incentive.

SPEAKER_01: We've actually – in partnership with the R&D team, we actually had some consultant

SPEAKER_01: analysis to look at what we thought the savings would be with regards to labor that could

SPEAKER_01: help sort of justify what an incentive level would be.

SPEAKER_01: We've drafted those incentive levels.

SPEAKER_01: We've done conversations internally to vet that from a financial standpoint.

SPEAKER_01: We have also been working to – one thing I will say is that we are planning on having

SPEAKER_01: that incentive be vendor agnostic, recognizing that while there are leaders in the space,

SPEAKER_01: there are other emerging entities in that space and so want to make sure that we have

SPEAKER_01: that.

SPEAKER_01: So we're developing the specs of what are the requirements to access that incentive

SPEAKER_01: but aren't dictating that it's only one specific company or another.

SPEAKER_01: We are, as part of that, looking to develop an incentive that's a like-for-like panel

SPEAKER_01: replacement and recognition that some customers with Zinsco panels are looking to replace

SPEAKER_01: their panel outside of requiring a building electrification measure.

SPEAKER_01: So those are some of those things that we've been vetting through.

SPEAKER_01: And then we're working closely with the vendors on what availability they have of equipment

SPEAKER_01: and the delivery pathways to be able to offer that as options for our customers.

SPEAKER_01: The other thing separately – Suresh is not here, but we're working on an IT project.

SPEAKER_01: This is more information you need to know.

SPEAKER_01: But SAP used to have – well, has a module called the demand-side management module that

SPEAKER_01: helps sort of manage our program incentives and measures and things like that.

SPEAKER_01: And SAP is discontinuing support of that.

SPEAKER_01: So we are in the process of replacing that with a different software tool.

SPEAKER_01: The timing of being able to get the program information in that tool is probably looking

SPEAKER_01: closer to the November timeframe.

SPEAKER_01: But there's some risk there.

SPEAKER_01: So I would say the team is working to have something as quickly as possible this year.

SPEAKER_01: But there's a couple of factors that are – that may play a role in how – when exactly it

SPEAKER_01: gets rolled out.

Unknown: Thank you for the great report of all the progress you're making.

SPEAKER_07: There is one group, however, and I'm reminded of it from personal experience recently,

SPEAKER_07: that we don't help.

SPEAKER_07: And that's the group of owner-builders who are trying to do projects around their own

SPEAKER_07: helms.

SPEAKER_07: They can't apply for and receive most of the SMUD incentives.

SPEAKER_07: And the way I know this was putting in a heat pump water heater, where I got two bids

SPEAKER_07: from SMUD contractors and they both came in about $6,000.

SPEAKER_07: And I put it in myself instead for about three hours and bought the thing from Home Depot.

SPEAKER_07: And so that extra five grand that we're paying to those contractors didn't really

SPEAKER_07: help SMUD get this job done.

SPEAKER_07: And so I wish there was some way, and I know I brought it up in the past, that we could

SPEAKER_07: come up with a program that owner-builders could take advantage of.

Unknown: Okay.

SPEAKER_01: Well, thank you for highlighting that for me.

SPEAKER_01: We'll definitely take that back to my team.

SPEAKER_01: One thing I will say that the team has been looking at – and it was part of some of

SPEAKER_01: the data that came out of the analysis that was done as part of the tech study for both

SPEAKER_01: the statewide efforts as well as looking at our own service territory – is there is

SPEAKER_01: a wide range of costs to your point of getting some of these measures installed.

SPEAKER_01: And one thing that we recognize is because of this very wide cost range could potentially

SPEAKER_01: obliterate some of the value of incentives.

SPEAKER_01: I know that's not exactly what you're saying, but my point is that, like, how do

SPEAKER_01: we think about helping the customers to be able to install these measures in a cost-effective

SPEAKER_01: way?

SPEAKER_01: What I hear you're saying is, hey, let me access some of these incentives.

SPEAKER_07: As soon as the contractor sets foot in my house, they take on all sorts of liability.

SPEAKER_07: Then they own the warranty.

SPEAKER_07: There's all kinds of things they've got to worry about.

SPEAKER_07: You know, they're looking at me.

SPEAKER_07: They assume I'm going to complain a lot.

SPEAKER_07: And so there are going to be some after-sales costs.

SPEAKER_07: But if I'm an owner-builder, all those costs evaporate.

SPEAKER_07: And so that's how these things could be installed, you know, much more – for a lot less money.

SPEAKER_07: And I'm remembering that we used to do this because I took advantage of it with the

SPEAKER_07: whole house fan, where I bought the fan and put it in.

SPEAKER_07: And if I went through the contractor system, we were rebating $1,000, but we were rebating

SPEAKER_07: to the homeowner who was installing it themselves $100, which was enough to get me to do it.

SPEAKER_07: And so I know there's some system here where we can take advantage of these owner-builders

SPEAKER_07: who are out there building stuff, and a little bit of incentive would push them toward a

SPEAKER_07: better outcome for us.

SPEAKER_01: Okay. I will follow up with that with the staff. Thank you.

Unknown: You may have gotten a bunch of customers here.

Unknown: I totally agree with Director Crothers' throw that out.

SPEAKER_05: It's a cosplay.

SPEAKER_05: I remember I had – my good friend at work was having the house insulation put into her

SPEAKER_05: attic, and she found that it was – and this is before we changed our contractor network,

SPEAKER_05: but it was a lot cheaper for her to use someone who was not a part of our network, like half

SPEAKER_05: the price than to go through the network, although I think that's – this was probably

SPEAKER_05: six, seven years ago, so we've changed up.

SPEAKER_05: But it's a good point, right?

SPEAKER_05: You show your receipt for buying a heat pump hot water heater, right?

SPEAKER_05: Well, in the permit –

SPEAKER_05: It's the point of the gesture, right?

SPEAKER_05: In the permit, right, from the city, because we don't want to buy it here and take it

SPEAKER_07: to some other county.

SPEAKER_07: So the permit to install has been signed off, if there ought to be some way to –

SPEAKER_05: I think – pardon me.

SPEAKER_05: I've been thinking about especially with the panel replacements and the Zinsco issue,

SPEAKER_05: it's like, well, I always like us showing a gesture to our customers.

SPEAKER_05: They pay hundreds of dollars a month for years and decades on end.

SPEAKER_05: I can see thrown in a couple hundred, $500 towards a panel replacement, but you can make

SPEAKER_05: their argument, you know, the panel is 70 years old, it's at the end of its life, it's

SPEAKER_05: your house, it's your panel, you should pay for it.

SPEAKER_05: So I always think there's a bit of a balancing out there.

SPEAKER_05: How much of the gestures matter in terms of customer service and showing that we care

SPEAKER_05: and support our customers, right, who are our owners, and also being strictly like policy

SPEAKER_05: wants, sort of the train of thought.

SPEAKER_05: Yeah, and you'll see actually in how we're developing as we finalize how we're developing

SPEAKER_01: those incentives for smart panels and panel replacements that we've actually do have

SPEAKER_01: a nod to that point.

SPEAKER_05: And the last thing I'll say, and I'll be quiet, please send us an update on complete

SPEAKER_05: energy solutions solicitation.

SPEAKER_05: I've heard it verbally, but I'd like something in writing.

Unknown: Okay.

SPEAKER_01: Yeah, basically I think the staff are getting ready to do demos very soon.

SPEAKER_01: But happy to do so.

SPEAKER_01: Just in paragraph.

Unknown: Yep.

SPEAKER_01: Any other questions before I go on?

SPEAKER_01: Just one little comment.

SPEAKER_00: Sure.

SPEAKER_00: I do want to say it's really great that we have an emergency water heater replacement

SPEAKER_00: offering coming because I've had that happen.

SPEAKER_00: People have asked me about that a couple of times.

SPEAKER_00: So glad we're looking at that.

Unknown: Great.

SPEAKER_01: Yeah, my neighbor texted me and staff were able to help her.

SPEAKER_01: So those are things that are very important.

SPEAKER_01: Yes.

SPEAKER_01: Okay.

SPEAKER_01: Okay, next slide.

SPEAKER_01: So this is where we get to showcase some of the great projects that are going on.

SPEAKER_01: So some notable things in the electrification building energy efficiency space.

SPEAKER_01: So as you know, getting customers to switch to electric, often one of the key barriers

SPEAKER_01: is the desire or lack of desire to switch from gas to electric cooking.

SPEAKER_01: It's a particular challenge as we think about cultural aspects of cooking.

SPEAKER_01: And wok cooking is one of the hardest, right, because of the value of the wok hay from the

SPEAKER_01: open flames.

SPEAKER_01: And that switch to electric isn't just about energy savings or emissions because we want

SPEAKER_01: to make sure that while that's true, we want to ensure that the food stays true to the

SPEAKER_01: culture.

SPEAKER_01: So of that, we are particularly proud, and a number of you are actually in this picture,

SPEAKER_01: of the Sacramento Asian Sports Foundation.

SPEAKER_01: In this picture on the left, this is showing the ribbon cutting when they unveiled their

SPEAKER_01: all electric commercial kitchen with several officials and community partners in attendance.

SPEAKER_01: This was made possible by the Community Impact Plans Business District electrification program,

SPEAKER_01: as well as DES's Complete Energy Solutions Small and Medium Business Electrification

SPEAKER_01: Program.

SPEAKER_01: They replaced all of their gas appliances with advanced electric cooking equipment,

SPEAKER_01: including an induction wok station with four woks, a griddle, two combination ovens, a

SPEAKER_01: deep fryer, and a stock pot station.

SPEAKER_01: This space is not only going to be used by the organization, which apparently has an

SPEAKER_01: infamous crab feed, and a huge crab feed that serves very many, but also is going to

SPEAKER_01: host demonstration and educational sessions to showcase and educate how Asian cooking

SPEAKER_01: can actually go induction.

SPEAKER_01: So that's one of those barriers, and it's a great investment and opportunity to partner

SPEAKER_01: with an agency that's interested in helping us further that education.

SPEAKER_01: The middle picture is of our now third annual SMUD contractor network event, which was held

SPEAKER_01: in January and celebrated our participating contractors supporting clean energy projects

SPEAKER_01: back in 2025.

SPEAKER_01: Highlights included recognizing top performers.

SPEAKER_01: We unveiled new heat pump rebates for 2026, and we actually even hosted our first ever

SPEAKER_01: vendor fair with 41 representatives from various local distributors, manufacturers, as well

SPEAKER_01: as Go Green financing.

SPEAKER_01: In 2025, we had 275 participating contractors from the SMUD contractor network.

SPEAKER_01: They completed over 6,000 projects worth over $12 million in rebates, significantly boosting

SPEAKER_01: the local economy by an estimated $85 million.

Unknown: Through our partnership with K-MAX, our very own Zach Lawrence, who is in there in the

SPEAKER_01: upright.

SPEAKER_01: He's our supervisor of SMUD's residential building electrification team.

SPEAKER_01: He was interviewed on K-MAX in a segment that shared the benefits of building electrification

SPEAKER_01: and getting that message out to our customers.

SPEAKER_01: And then finally, in the lower right-hand corner is a photo featuring the video that

SPEAKER_01: was created entitled SMUD is Powering the Places We Call Home.

SPEAKER_01: With our very own SMUD customers, Joel and Kristin Raythewall, they did energy efficiency

SPEAKER_01: measures and went all electric with their home.

SPEAKER_01: They took advantage of our rebates for their electrical panel, a heat pump HVAC system,

SPEAKER_01: heat pump water heating, induction cooking, and air sealing and insulation.

SPEAKER_01: So wonderful to see our customers featured in the work that they're doing to go all

SPEAKER_01: electric.

Unknown: Next slide.

SPEAKER_01: I might add that they are part of the Curtis Park Electric Stars.

SPEAKER_00: Well, that's fantastic so they can spread the message even more.

Unknown: Okay, transportation electricity.

SPEAKER_01: Do we have a...

SPEAKER_05: I'm sure we should...

SPEAKER_05: Are we getting the feedback from those contractors and giving them a survey and how they do that?

SPEAKER_05: Yeah, so we survey the contractors within our contractor network.

SPEAKER_01: As I mentioned, too, we've been doing a lot with the contractor network to help not only...

SPEAKER_01: We actually do monthly educational sessions with our contractor network, so I try to put

SPEAKER_01: in the monthly board report what the topic was of that month, just so you know.

SPEAKER_01: And like I said, we do periodic surveys with our contractor network, and we're trying to

SPEAKER_01: make sure that we've got a robust contractor network that are doing projects that are relevant

SPEAKER_01: to our incentive programs and they're up and current so that customers really have those

SPEAKER_01: options that are with contractors with great experience that's recent.

Unknown: Okay, transportation electrification.

SPEAKER_01: Like building electrification, transportation electrification supports our customers and

SPEAKER_01: our region by both providing carbon emissions reductions as well as energy cost savings

SPEAKER_01: for our customers while providing revenue to SMUD through beneficial load growth.

SPEAKER_01: In fact, there's a lot of press about data centers, and I've said this last year, and

SPEAKER_01: EPRI has an updated slide actually about data centers and EVs.

SPEAKER_01: And while in the short term it's true that data center load may increase faster, in

SPEAKER_01: the long run, EPRI still says that EVs is going to be the largest load growth for utilities.

SPEAKER_01: That's really that long-term growth opportunity.

SPEAKER_01: Transportation is the number one source of carbon emissions in California, so the switch

SPEAKER_01: to electric does provide significant carbon savings at a cost that's competitive to market

SPEAKER_01: prices for carbon.

SPEAKER_01: In 2025, EVs in our service territory reduced emissions by 228,000 metric tons of carbon

SPEAKER_01: dioxide equivalent, and in 2026 we expect to reduce a total of 270,000 metric tons.

SPEAKER_01: And then EV owners in SMUD's territory pocketed an estimated $118 million in gas savings in

SPEAKER_01: 2025, and we're expected to save $140 million in 2026, so it's pretty significant.

SPEAKER_01: Next slide.

SPEAKER_01: So similar to building electrification, we have seen a lot of external headwinds.

SPEAKER_01: That included the loss of the federal tax credit late last year that expired at the

SPEAKER_01: end of September, coupled with the run-up of EV adoption given the expiration.

SPEAKER_01: So 2026 got impacted because everybody raced to go get EVs right before that tax credit

SPEAKER_01: expiration, so we saw a big spike in 2025, and that obviously impacted us in early 2026.

SPEAKER_01: The run-up of gas prices that we've seen has helped a bit with EV adoption despite the

SPEAKER_01: loss of the federal tax credit, and we think that we're going to get close, but we are

SPEAKER_01: still forecasting to miss the year-end goal.

SPEAKER_01: But despite that, customer interest does remain strong.

SPEAKER_01: Based upon research by Cox Automotive and J.D. Powers, 65% of people who intend to buy

SPEAKER_01: an EV still plan to purchase, and 94% of current owners intend to repurchase an EV.

SPEAKER_01: So it really makes the gap between intention and purchase that affordability thing, and

SPEAKER_01: that's obviously impacted by the availability of federal funding and tax credits.

SPEAKER_01: So efforts underway to bolster adoption include both efforts by SMUD, but actually we are

SPEAKER_01: also seeing some statewide efforts that are attempting to add some funds where the federal

SPEAKER_01: government has pulled back, and I'll talk a little bit more about those in the next slide.

SPEAKER_01: And then SMUD is also planning to increase our EV circuit rebate from 500 to 750 to continue

SPEAKER_01: to support circuit installation costs with the updated rebate expected in Q3 of this

SPEAKER_01: year, so coming up very, very soon.

SPEAKER_01: Next slide.

SPEAKER_01: So the team has been taking a number of actions to help bolster EV adoption in our territory

SPEAKER_01: as well as complement those external efforts that are working to try to address some of

SPEAKER_01: those gaps left by the federal funding pullback with the federal clean vehicle tax credit

SPEAKER_01: that expired September 30th of last year.

SPEAKER_01: Just recall, like as you think about our EV growth trajectory, you know, especially

SPEAKER_01: for 2030, that federal tax credit was expected to originally not expire until 2032, so it

SPEAKER_01: really gives you a contrast of what we thought was going to be available and what actually

SPEAKER_01: happened when they pulled back that tax credit.

SPEAKER_01: We're also doing a lot more work from an outreach standpoint, both to get the message out to

SPEAKER_01: all of our customers as well as specifically to focus on our disadvantaged communities.

SPEAKER_01: We've relaunched public EV educational workshops to inform our customers about the benefits

SPEAKER_01: of going electric for their transportation.

SPEAKER_01: You've probably seen a lot of the Go electric advertisements and marketing that's been out

SPEAKER_01: recently.

SPEAKER_01: Year to date, SMUD has delivered two successful ride and drive events, both at the ECOS event

SPEAKER_01: as well as in ARDIN, providing a total of 345 in-car EV experiences.

SPEAKER_01: The ARDIN event actually received CBS 13 media coverage.

SPEAKER_01: I know it highlighted Abby, who's our program manager for the ride and drives, and really

SPEAKER_01: highlighted SMUD's commitment to supporting our customers, EV education, as well as increasing

SPEAKER_01: regional awareness about clean transportation options.

SPEAKER_01: We're also deepening partnerships with community-based organizations that serve equity and disadvantaged

SPEAKER_01: communities to provide accessible EV information, build trust within our communities, as well

SPEAKER_01: as reach customers who have historically faced barriers to EV adoption.

SPEAKER_01: We actually are preparing three additional ride and drives and three EV educational events

SPEAKER_01: through October that include participation at North and Thomas's Drive Electric Expo,

SPEAKER_01: celebrate North Highlands, Capitol Air Show, a micro ride and drive at the South Sacramento

SPEAKER_01: Christian Center, SMUD's Community Resource Fair, and Caltrans National Drive Electric

SPEAKER_01: Month celebration.

SPEAKER_01: This outreach is actually really opportune because despite federal pullback, we do see

SPEAKER_01: a number of auto OEMs that are starting to introduce EVs priced around the $30,000 range.

SPEAKER_01: We're starting to see a little bit more availability of used EVs as leases are being turned in.

SPEAKER_01: There's the 2026 Nissan Leaf and the 2027 Chevy Bolt that are all coming in that $30,000

SPEAKER_01: range.

SPEAKER_01: We're also seeing a number of EVs coming out of China that are fully featured and have

SPEAKER_01: low MSRPs, but unfortunately with the tariffs are really pricing them currently out of the

SPEAKER_01: market.

SPEAKER_01: But when and if that changes, that could really unleash additional models for people to choose

SPEAKER_01: from as they think about EV options.

SPEAKER_01: And then the Statewide California Clean Fuel Rewards Program, that's the program that's

SPEAKER_01: funded through the Low Carbon Fuel Standard Credit.

SPEAKER_01: That transitioned from what was originally a light duty incentive program, a cash on

SPEAKER_01: the hood program, to incentivized medium and heavy duty vehicle electrification.

SPEAKER_01: So the California Air Resources Board recognized that that was an opportunity and so transitioned

SPEAKER_01: that with a launch in, actually I think it was June 26th was the launch date for the

SPEAKER_01: medium and heavy duty vehicle electrification incentives and that's off to a good start.

SPEAKER_01: SMUD served on the steering committee for that, helped design that program and launched

SPEAKER_01: that program which launched on July 26th.

SPEAKER_01: There is a significant amount of activity in the EV space in adding chargers to our

SPEAKER_01: region, many through grant funded projects.

SPEAKER_01: So SMUD is implementing a project under the California Energy Commission funded Reach2

SPEAKER_01: grant.

SPEAKER_01: This is working to expand equitable access to EV charging infrastructure in SMUD's disadvantaged

SPEAKER_01: communities by deploying a scalable, replicable model for charging access at multifamily and

SPEAKER_01: multifamily adjacent properties supporting clean transportation goals.

SPEAKER_01: We were awarded $5 million and the project is targeting 400 Level 2 chargers.

SPEAKER_01: We have MOUs in place and signed for 342 of the 400 handles and are working to recruit

SPEAKER_01: those remaining handles for the completion of the grant which is scheduled for May 31st

SPEAKER_01: of 2027.

SPEAKER_01: So we got a little bit of time to finish up and get those last couple of handles.

SPEAKER_01: Recognizing the need for diverse charging options, SMUD is also implementing a project

SPEAKER_01: under the CEC funded FAST grant where we were awarded $2.8 million to support EV charging

SPEAKER_01: infrastructure for high mileage, on demand transportation services, car sharing enterprises

SPEAKER_01: as well as car rental agencies in the public.

SPEAKER_01: This project that's already underway will support the deployment of two 150KW DC FAST

SPEAKER_01: charging hubs with a total of 13 stations and 26 ports in strategically chosen locations

SPEAKER_01: with high on demand transportation volume and quick and easy access to main transportation

SPEAKER_01: corridors.

SPEAKER_01: So six stations are going to be located at the Capitol Public Radio station parking lot

SPEAKER_01: on CSUS's campus near Folsom Boulevard.

SPEAKER_01: And seven stations will be located in the new rideshare driver waiting lot at the Sacramento

SPEAKER_01: Airport with a forecasted commissioning date of early next year.

SPEAKER_01: And that grant also finishes up at the end of March.

SPEAKER_01: With regards to the EV charging in addition to the FAST grant, FAST grant DC FAST chargers

SPEAKER_01: at Sacramento Airport, the airport is continuing development of the new rental car agency

SPEAKER_01: facility which includes EV charging infrastructure to support rental car fleet electrification.

SPEAKER_01: Works on this project and details on the numbers of handles and types are still being

SPEAKER_01: developed because completion is expected to align with the timeline for a bulk substation

SPEAKER_01: coming online around 2030 as the car rental agency's project demand is expected to exceed

SPEAKER_01: available capacity.

SPEAKER_01: So the strategic account advisors are very actively engaged with the airport team and

SPEAKER_01: working with them as they go through each stage of planning.

SPEAKER_01: And my team is also engaged to support that EV charging adoption which we expect to probably

SPEAKER_01: be a mix of level 2 charging as well as maybe some FAST charging.

SPEAKER_01: In addition, in order to ensure that we can support the load growth from electrification,

SPEAKER_01: we continue to refine our analysis and we completed an updated integration integrated

SPEAKER_01: distribution resources plan.

SPEAKER_01: So the last time we did that was actually before the 2030 plan.

SPEAKER_01: So it's a little bit of a while.

SPEAKER_01: It informs SMUD on what infrastructure is needed to support the load growth and explores

SPEAKER_01: the potential for DERs to help mitigate the grid investment cost needed.

SPEAKER_01: This analysis we're actually going to be bringing to the board in an upcoming board meeting.

Unknown: Yes.

Unknown: The DC FAST charger numbers seem like we're falling behind there.

SPEAKER_06: Our goal was 20.

SPEAKER_06: We're going to get maybe to 9.

SPEAKER_06: We had 59 last year.

SPEAKER_06: Why the drop off there?

SPEAKER_01: A lot of it is funding.

SPEAKER_01: So I think there is there was a lot of grant funding available and with the federal funding

SPEAKER_01: pullback, there just hasn't been as many.

SPEAKER_01: I think we are still trying to support.

SPEAKER_01: So in addition to the FAST grant where the team has been working with regards to those

SPEAKER_01: specific projects, the Amtrak station replacement actually was originally part of FAST but because

SPEAKER_01: of timing and funding got pulled out but we've actually re-added back the Amtrak station

SPEAKER_01: back in so we'll be doing that.

SPEAKER_01: But you're right.

SPEAKER_01: It is smaller than what it's been in the past.

SPEAKER_06: These are just projects that we have a direct role in, correct?

SPEAKER_06: Yes.

SPEAKER_06: It's not total number of DC FAST chargers in our service here.

SPEAKER_06: Yes.

SPEAKER_01: These are the ones that are incentivized through our programs or participating in our programs.

SPEAKER_06: The Bellaire store near my house at Eastern and Arden, they're about to commission I think

SPEAKER_06: like eight or nine new Tesla handles that are I think they qualify as DC FAST chargers

SPEAKER_06: or leave most of them.

SPEAKER_06: So they're not counted in these numbers.

SPEAKER_01: They're not counted in these program numbers.

SPEAKER_06: Correct.

Unknown: Okay.

Unknown: I think many of you may have also heard that California did allocate dollars in their budget

SPEAKER_01: to provide some incentive dollars to help bolster EV adoption given the federal pullback.

SPEAKER_01: So California did launch the My First EV program last month that provides $1,750 to $3,500

SPEAKER_01: off a new or used electric vehicle.

SPEAKER_01: The state's $130 million investment is matched by select automakers and is intended to help

SPEAKER_01: shore up that support for the EVs within the state of California.

SPEAKER_01: And then looking ahead, we are finishing up the deployment or the development of the SMUD

SPEAKER_01: public charging EV app with SEW.

SPEAKER_01: We're working on a project to enable that pricing program that we've been talking about

SPEAKER_01: for a while that will enable us to provide discounted public EV charging for income-qualified

SPEAKER_01: customers as well as transportation network drivers to help improve that access to low-cost

SPEAKER_01: charging within our service territory.

SPEAKER_01: And then while our commercial EV program already incentivizes smart outlets as featured with

SPEAKER_01: the Bridgway Estates project that we featured in last year's board presentation, we're actually

SPEAKER_01: looking closely at how we can leverage smart outlets, particularly in the multifamily space,

SPEAKER_01: as well as a potential alternative for avoiding vandalism situations.

SPEAKER_01: We have been, unfortunately, seeing some of them with our community impact plan projects,

SPEAKER_01: unfortunately, where we've seen some vandalism of EV charging cords being cut.

SPEAKER_01: And so think that this might be a great opportunity to help address some of that as well and continue

SPEAKER_01: to grow charging options across the various customer segments.

SPEAKER_01: We are going to be finishing up both Reach2 and FAST grant projects and charging installations,

SPEAKER_01: as I mentioned, by the end of March, which is when the grant completes.

SPEAKER_01: And we are planning for future vehicle-to-grid opportunities.

SPEAKER_01: I know James Frazier is going to be coming to the board talking about SD10 and innovation

SPEAKER_01: in a couple weeks, I believe, and he'll go into more detail about the work that the R&D

SPEAKER_01: team is doing in that space.

Unknown: With the grant funding, I know the price of the DC FAST chargers have gone down significantly.

SPEAKER_04: What has been the average cost and how much of that per station has been grant funded?

Unknown: I don't know off the top of my head, but I'm happy to follow up.

SPEAKER_01: I know it's gone down.

SPEAKER_01: Yes, the costs have gone down.

SPEAKER_04: And then for the EV charging app, where are we on launching something?

SPEAKER_04: I know that there's been a lot of discussion about trying to do it multiple.

SPEAKER_04: We have like a million charging networks here.

SPEAKER_04: Where are we on just picking one so we can just get something off the ground so we can

SPEAKER_04: see if the app even works?

SPEAKER_01: Yeah, so we are in the testing phase of the app that's been developed with SEW.

SPEAKER_01: The key is what chargers the EV app works with.

SPEAKER_01: To your point about like can it work with multiple chargers and things like that, SEW

SPEAKER_01: has worked with ChargeHub to be able to provide access to different charging networks.

SPEAKER_01: I think we are looking at when to launch the app relative to operational support for the

SPEAKER_01: program relative to things like the pricing program.

SPEAKER_01: So we are hoping to get all the testing done.

SPEAKER_01: Like I said, the testing is going on right now.

SPEAKER_01: But I think that we have a supplemental project that we have to work on to really kind of

SPEAKER_01: complete all the functionality that we will be submitting for prioritization this year.

SPEAKER_01: So hopefully we can get some work done to have some availability next year is the hope.

Unknown: Do you think sometime next year we might see a pilot of some sort?

SPEAKER_01: Yes.

SPEAKER_01: Rachel, can I ask you, are you done with this slide?

SPEAKER_05: Yeah, we can be done with this slide.

SPEAKER_05: Okay.

Unknown: I just wanted to ask you a little bit about your thoughts on the heavy duty side, which

SPEAKER_05: is always near and dear to my heart.

SPEAKER_05: Do you just need that as an open question for you?

Unknown: Oh, well, a couple things.

SPEAKER_01: So the integrated distribution resources plan analysis, IDRP, that I said that we will be

SPEAKER_01: bringing to the board in an upcoming board meeting, actually did try to provide a refined

SPEAKER_01: estimate of medium and heavy duty vehicle electrification versus sort of the very high

SPEAKER_01: level estimate that we did in the last IDRP.

SPEAKER_01: And then also you are probably familiar and I have talked about in the past the work that

SPEAKER_01: we did with the CEC Blueprint funding relative to medium and heavy duty vehicle electrification.

SPEAKER_01: The other thing to consider though is there is also that federal funding pullback that

SPEAKER_01: is also impacting medium and heavy duty vehicle electrification.

SPEAKER_01: And the reality is, is most are saying that that is probably slowed down versus what that

SPEAKER_01: original trajectory of adoption is going to be.

SPEAKER_01: I think that is why things like the switch for the LCFS funding to helping support adoption

SPEAKER_01: of medium and heavy duty vehicles is helpful.

SPEAKER_01: I think there is still going to be fleets that look at it from a financial opportunity

SPEAKER_01: standpoint because of the cost of gas, the maintenance pieces.

SPEAKER_01: And so I don't think fleets are not adopting them, but I think it is just not at the same

SPEAKER_01: pace that we had originally anticipated.

SPEAKER_01: So how we are looking at it from SMUD is, you know, what are the things that we can

SPEAKER_01: do to continue to support that adoption?

SPEAKER_01: And then how do we think about the charging infrastructure needed to support that adoption

SPEAKER_01: as well?

SPEAKER_01: And that is really what our focus is on.

SPEAKER_01: So we don't think adoption is going to stop.

SPEAKER_01: We think LCFS, that clean fuel rewards program will help, but it is just not going to be

SPEAKER_01: on the same trajectory.

SPEAKER_01: Because I know our technical assistance program with Black and Beach, I think, remember last

SPEAKER_05: week said it wasn't having a huge strong demand in that.

SPEAKER_05: Is like the WAD-EV project still progressing?

Unknown: I don't have the latest on the WAD-EV.

SPEAKER_01: I know the customer side has continued to work with that team with regards to kind of

SPEAKER_01: where they are.

SPEAKER_01: So I can find out the status of that.

SPEAKER_01: I think it is something to think about.

SPEAKER_05: Diesel is over $8 a gallon.

SPEAKER_05: Yeah.

SPEAKER_01: That is the balance with EVs, right, which is the cost of gasoline and diesel right now

SPEAKER_01: is so high that it has helped some degree of EV adoption, but just not that full recovery

SPEAKER_01: of the original trajectories that we were anticipating.

SPEAKER_05: Thank you.

SPEAKER_01: Next slide.

SPEAKER_01: So for transportation electrification, I'm going to speed up a little bit.

SPEAKER_01: So highlights from a project standpoint, I talked about a REACH2 grant project that is

SPEAKER_01: working to expand that equitable access to EV charging infrastructure in SMUD's disadvantaged

SPEAKER_01: communities.

SPEAKER_01: The middle top picture on the left showcases the Salishan Apartments, where 18 Level 2

SPEAKER_01: chargers were installed in three different areas of the apartment complex to ensure easy

SPEAKER_01: access for its residents.

SPEAKER_01: This site is actually one of the first two projects to be completed under the REACH2

SPEAKER_01: grant.

SPEAKER_01: In the middle, on the top, you know, work with development is really, really key and

SPEAKER_01: necessary in order to support this transportation electrification adoption, as well as to support

SPEAKER_01: economic development and prosperity from a zero carbon plan.

SPEAKER_01: So the middle top picture showcases the training that the e-fuel program did for five of the

SPEAKER_01: fusion electricians for certification on installation and commissioning of the chem power equipment

SPEAKER_01: that's going in.

SPEAKER_01: This training was held at the Cal-EPIC facility, and supporting the charger deployments under

SPEAKER_01: the FAST grant.

SPEAKER_01: The bottom middle photo features construction underway at Sac State, with all the boring

SPEAKER_01: complete and the SMUD primary inspections passed for Rule 16 equipment, make ready.

SPEAKER_01: Those have placed all the conduit and have backfilled the trenches.

SPEAKER_01: That's for the FAST charger that's going in by Capital Public Radio.

SPEAKER_01: And then at the right features our very own director, Rosanna Herber, with our program

SPEAKER_01: manager, Abby Visvanathan, at the Eco's Earth Day Ride and Drive event at Southside Park

SPEAKER_01: earlier this year.

SPEAKER_01: Next slide.

Unknown: Okay.

SPEAKER_01: It's a great photo showing your trenching and all your brace paper calls.

SPEAKER_05: It is in construction.

SPEAKER_01: Those projects are in construction for sure.

SPEAKER_01: Okay.

SPEAKER_01: Distributed energy resources and load flexibility.

SPEAKER_01: So those are the programs that help shift and manage loads to maximize the use of our

SPEAKER_01: renewable energy generation, create capacity where and when needed to support the bulk

SPEAKER_01: system or the localized grid.

SPEAKER_01: And in the future, we'll help us be able to take advantage of market participation to

SPEAKER_01: optimize resources.

SPEAKER_01: You may recall on our zero carbon plan, we're aiming to achieve 634 megawatts.

SPEAKER_01: That was the minimum sports, mud zero carbon efforts for new technologies and business

SPEAKER_01: models.

SPEAKER_01: And this is where our customers can help manage their energy use, can actually help support

SPEAKER_01: reduced incentives in alternate utility scale resources, and can be cost competitive, potentially

SPEAKER_01: alleviating grid constraints.

SPEAKER_01: Next slide.

SPEAKER_01: For the load flexibility portfolio, despite a large amount of activity in the residential

SPEAKER_01: battery energy storage space through our My Energy Partner Plus program, we are still

SPEAKER_01: falling short of our annual goal at the portfolio level, as well as coming very close, but just

SPEAKER_01: a bit short of our 26 goal under the zero carbon plan.

SPEAKER_01: There is a theme that I want you guys to keep in mind to ensure that the load flexibility

SPEAKER_01: that we provide is robust, is cost effective, and are reliable resources.

SPEAKER_01: That's really critical for the DERs to be able to play a role in both helping support

SPEAKER_01: electrification load growth, as well as integrating renewables.

SPEAKER_01: This means that while we may have lower megawatts total for the portfolio that you see at the

SPEAKER_01: end of the year from the forecast, we do actually have more confidence in the value that those

SPEAKER_01: megawatts that are coming are intending to provide and have adjusted our programs as

SPEAKER_01: such.

SPEAKER_01: I'm going to give a little bit more detail in the next slide.

SPEAKER_01: You can see the evidence of this in actually our April May results, because you're like,

SPEAKER_01: why did you go from 82.3 down to 80.4?

SPEAKER_01: Like theoretically, usually you're adding customers.

SPEAKER_01: What was that step change?

SPEAKER_01: I'll go into a little bit more detail in the next slide.

SPEAKER_01: Really, we ended up changing the event hours for our commercial power direct program.

SPEAKER_01: We recognized the teamwork with resource planning to assess the value of the program, and we've

SPEAKER_01: had a certain program design with certain event hours in the past, and we had them give

SPEAKER_01: us an updated value of the program with those event hours.

SPEAKER_01: What came back from the analysis is that because our resource mix is changing, the

SPEAKER_01: value of those resources from that timeframe were no longer as valuable as they used to

SPEAKER_01: be.

SPEAKER_01: We instituted a change to the event hours, and that actually resulted in a change of

SPEAKER_01: some of our customers' ability to participate in the load flexibility for those changed

SPEAKER_01: hours in that new time window.

SPEAKER_01: What we've done is we haven't dropped those customers, but what we did is we didn't call

SPEAKER_01: on those customers for summer events this year, and we're actually working with that

SPEAKER_01: customer through our program design, and I'll tell more about it in a second, to see

SPEAKER_01: what future opportunities there is for them to participate in load flexibility for the

SPEAKER_01: hours that they can flex.

SPEAKER_01: This is just an example of one of the evolutions we're doing with our programs, and I'll cover

SPEAKER_01: more in the next slide.

SPEAKER_01: Okay, next slide.

SPEAKER_01: The details.

SPEAKER_01: We've seen, as you can see on the very top, for My Energy Optimizer batteries, we've seen

SPEAKER_01: overwhelming interest in our My Energy Optimizer Partner Plus program, which is our residential

SPEAKER_01: battery storage program.

SPEAKER_01: We are forecasting to achieve over double our 2026 goal, delivering over 19 megawatts

SPEAKER_01: of capacity through the end of July this year.

SPEAKER_01: We've actually already surpassed what our trajectory was for our 2028 goals for that

SPEAKER_01: program in 2026 alone.

SPEAKER_01: Given the success and to better align the incentives to the value of the resource, we

SPEAKER_01: are reducing the upfront enrollment incentives starting September 23rd.

SPEAKER_01: Those upfront incentives will be reduced for projects submitted for interconnection on

SPEAKER_01: or after September 23rd from the $500 to $300 per kilowatt hour with a maximum cap

SPEAKER_01: of $6,000 per household.

SPEAKER_01: The higher incentive will still be honored for customers who submit for interconnection

SPEAKER_01: on or before September 22nd and enrolled in the customer by the end of the year, so the

SPEAKER_01: program by the end of the year.

SPEAKER_01: So really, we want to make sure that those projects are getting done.

SPEAKER_01: But something to note, even with this incentive change, SMUD continues to offer one of the

SPEAKER_01: most generous battery incentives in the nation.

SPEAKER_01: I know of utilities that are offering like $500 for a battery storage system.

SPEAKER_01: So while supporting affordability and our decarbonization goals, the program achieved

SPEAKER_01: several other key milestones in 2026, including the development of full operational processes

SPEAKER_01: for both bulk system and distribution level dispatches, and it successfully delivered

SPEAKER_01: its first customer events during the summer season.

SPEAKER_01: That point about distribution level dispatches, so the distribution operations team actually

SPEAKER_01: reached out to the load flex team this year in June because they had substation upgrade

SPEAKER_01: work in the Orangevale and Citrus Heights area and asked the battery storage program

SPEAKER_01: if we could actually dispatch batteries in that specific location to help out.

SPEAKER_01: And what we're able to do is it's demonstrating growing operational integration as well as

SPEAKER_01: confidence in the program's abilities, and that's a really, really big win for us.

SPEAKER_01: Consistent with the theme I mentioned the portfolio, this summer for our Smart Thermostat

SPEAKER_01: program we launched an energy shift capacity pilot to test new load shaping strategies.

SPEAKER_01: We partnered with Renew Home.

SPEAKER_01: They're the ones that provide the Google Nest thermostat load flexibility platform.

SPEAKER_01: They've developed an innovative offering that increases thermostat load shifting capability

SPEAKER_01: by adjusting the customer thermostat by a half to two degrees during peak demand events.

SPEAKER_01: The pilot did test the ability to materially enhance the performance that we're getting

SPEAKER_01: from that program during long duration events, right?

SPEAKER_01: That's the hard part is like during the multi-hour events we get great performance in the first

SPEAKER_01: hour and then it kind of decreases in the second hour.

SPEAKER_01: So we're trying to figure out how do we really maximize the performance and aggregating that

SPEAKER_01: resource while potentially improving cost effectiveness because we want to make sure

SPEAKER_01: that these are cost effective resources.

SPEAKER_01: So those pilot results are going to help us determine in the long-term scalability and

SPEAKER_01: integration of the solution into SMUD's load flex portfolio.

SPEAKER_01: We're also working to identify free riders who receive incentives but don't contribute

SPEAKER_01: to load reductions during events.

SPEAKER_01: So I think we've given the board a heads up that we're going to be sending out communication

Unknown: to Google Nest customers who opt out of 60% of peak event minutes.

SPEAKER_01: Now we're not saying, hey, we're dropping you.

SPEAKER_01: We're saying like, hey, we noticed that you haven't been opting out.

SPEAKER_01: Is this still a good fit for you?

SPEAKER_01: So really putting it with the customer.

SPEAKER_01: But what we want to do is we want to ensure that the program includes customers that feel

SPEAKER_01: that this program is a good fit for them and that their resources can have the confidence

SPEAKER_01: to show up to be able to provide those resources and the reliability of them to the grid when

SPEAKER_01: an event is called as well as continue to optimize for program costs.

Unknown: I mentioned in the previous slide the event hours for PowerDirect but just a little bit

SPEAKER_01: more detail.

SPEAKER_01: So resource planning completed what we call an effective load carrying capability, ELCC

SPEAKER_01: assessment.

SPEAKER_01: And what it did is it assessed our PowerDirect's contribution to SMUD's resource adequacy.

SPEAKER_01: It took into consideration our actual program performance, the availability of the resource,

SPEAKER_01: and alignment with net load conditions.

SPEAKER_01: But because we're seeing substantial new utility scale solar and wind resources coming online

SPEAKER_01: this year, our highest risk hours shifted later into the evening.

SPEAKER_01: So as a result, the PowerDirect capacity value declined.

SPEAKER_01: It used to be about 56% in 2025 and it went down to 7% in 2026.

SPEAKER_01: So it really spoke to needing to tweak what are event hours in order to maximize that

SPEAKER_01: value.

SPEAKER_01: To better align that emerging system need, the program team extended the PowerDirect event

SPEAKER_01: window from 3 to 7 to 3 to 9.

SPEAKER_01: And so that was where some of those commercial customers really couldn't be able to shift

SPEAKER_01: in some of those later hours that we extended it to.

SPEAKER_01: It did result in reduced customer participation and lower enrolled megawatts.

SPEAKER_01: But one of the things that we are doing, well, as a result, though, the megawatts that do

SPEAKER_01: remain enrolled provide that higher system value to SMUD and it aligns with SMUD's net

SPEAKER_01: peak risk period.

SPEAKER_01: The other thing that the team is doing is actually working on a redesign of the PowerDirect

SPEAKER_01: program.

Unknown: And we want to improve its flexibility and at the same time customer experience and scalability.

SPEAKER_01: So as mentioned, traditionally our programs say you have to reduce or you have to shift

SPEAKER_01: your load for this full entire event hours.

SPEAKER_01: So the redesign structure we're looking at is going to allow customers to select participation

SPEAKER_01: durations that fit their operations.

SPEAKER_01: So ranging from one hour to five hour commitments.

SPEAKER_01: And then we're going to scale the incentives to better align to their levels of participation.

SPEAKER_01: So it improves to better align with their business operations and also better helps

SPEAKER_01: us from a cost effectiveness resource standpoint.

SPEAKER_01: We're wrapping up contract negotiations for our commercial VPP offerings.

SPEAKER_01: So I know we've talked to you about that, which is that pilot that is targeting select

SPEAKER_01: commercial and industrial customers behind substations that we have a future to be overloaded

SPEAKER_01: to enhance grid reliability, provide avoidance capacity from an RA avoidance capacity as

SPEAKER_01: well as have that potential to defer those substation upgrades.

SPEAKER_01: The program offers both an upfront and ongoing incentives to accelerate that battery storage

SPEAKER_01: adoption and encouraging our commercial and industrial customers to host and operate storage

SPEAKER_01: assets for grid services.

SPEAKER_01: Those contract negotiations are wrapping up.

SPEAKER_01: We're hoping to launch by the end of the year and then have those installations come be

SPEAKER_01: realized in 2027.

SPEAKER_01: We are wrapping up evaluations for our multi-DER vendor selection.

SPEAKER_01: That's our combined thermostat, residential battery energy storage and EV managed charging.

SPEAKER_01: So we're hoping to have a new vendor online next year.

SPEAKER_01: You will recall that while we have opened up our battery storage program to multiple

SPEAKER_01: OEMs, that currently Tesla is the only one that we can control.

SPEAKER_01: But the intent would be with this new vendor we can control all the battery storage with

SPEAKER_01: the different manufacturers.

SPEAKER_01: And then finally we're exploring some residential front of the meter battery storage models

SPEAKER_01: to pilot where maybe concentrated battery storage deployment could deliver localized

SPEAKER_01: value.

SPEAKER_01: Next slide.

SPEAKER_01: So some highlights for load flex.

SPEAKER_01: The photos on the right showcase the marketing for our My Energy Optimizer partner program.

SPEAKER_01: So that's our smart thermostats program.

SPEAKER_01: The first two on the top.

SPEAKER_01: And then the bottom one is our web page with information on our partner plus program for

SPEAKER_01: the residential battery energy storage before we've announced the battery storage incentive

SPEAKER_01: decrease.

SPEAKER_01: Both of those programs are exceeding our goals this year.

SPEAKER_01: So marketing did a digital Amazon ad campaign on the left.

SPEAKER_01: And then they also provided an end of season performance impact message for the thermostat

SPEAKER_01: program that you can see here.

SPEAKER_01: Which is kind of cute, right?

SPEAKER_01: That shows how much those thermostats really did in terms of equivalent hair dryers of

SPEAKER_01: how much energy that they were able to shift.

SPEAKER_01: Which is pretty significant.

SPEAKER_01: As I mentioned we are decreasing the storage incentive and we have updated our web page

SPEAKER_01: to include that information effective September 23rd.

SPEAKER_01: On the left our Power Direct program which is our commercial load flexibility program

SPEAKER_01: that I mentioned that we've changed the hours and are working to redesign the program actually

SPEAKER_01: enrolled two new notable customers this year.

SPEAKER_01: The bottom left picture is actually a picture that we also had last year because we featured

SPEAKER_01: them because they went all electric.

SPEAKER_01: And they put in EV charging.

SPEAKER_01: It's core the new hub for health wellness and connection in Elk Grove which opened in

SPEAKER_01: July of 2025.

SPEAKER_01: It's owned and operated by the Consumna's Community Services District.

SPEAKER_01: It's a 59,000 square foot all electric two story facility addressing a critical community

SPEAKER_01: need by providing year round access to court sports, fitness and flexible programming for

SPEAKER_01: all ages and abilities.

SPEAKER_01: They did participate in the first Power Direct event this August and contributed an average

SPEAKER_01: of 50 kilowatts of load shade capacity back to the grid.

SPEAKER_01: On the top you've got Home Depot.

SPEAKER_01: Actually 11 the 11 Sacramento Home Depot stores within our service territory enrolled in the

SPEAKER_01: Power Direct program through a company called Voltus that's an external aggregator that

SPEAKER_01: recruits customers into load flexibility programs.

SPEAKER_01: And the 11 stores participated in the first Power Direct event this past August contributing

SPEAKER_01: an average of 960 kilowatts of load shade back to the grid.

SPEAKER_01: So really seeing some great performance by some of our new customers.

SPEAKER_01: Okay next slide.

SPEAKER_01: Green pricing.

SPEAKER_01: Yes.

Unknown: I guess one of the key takeaways is the tremendous success of our home batteries program and

SPEAKER_05: building a virtual power plant.

SPEAKER_05: You talked about it a little bit but it sort of makes it clear right.

SPEAKER_05: In terms of the work we're doing how to dispatch that and really put it to the use of the greater

SPEAKER_05: good.

SPEAKER_05: Is that what you were talking about?

SPEAKER_05: That's part of what we're doing in 2027.

SPEAKER_05: Is there already work going on though?

Unknown: Yeah.

SPEAKER_01: So I talked a little bit about what we're doing to kind of shift our programs and really what

SPEAKER_01: it speaks to and we'll talk more about it in the IDRP analysis.

SPEAKER_01: But from a financial model standpoint when we've designed a lot of our load flexibility

SPEAKER_01: programs they've been on the bulk system value right.

SPEAKER_01: So from an RA capacity standpoint.

SPEAKER_01: But what we're seeing is as the resource mix changes that value can potentially go down.

SPEAKER_01: And so as such to really justify the incentives to get customers to participate or those ongoing

SPEAKER_01: capacity payments we need to find additional value streams.

SPEAKER_01: So maybe even back in the zero carbon plan for a long time we've talked about load flexibility

SPEAKER_01: and the concept of stacking value streams.

SPEAKER_01: Well really what we're starting to see is that we're needing to, we've been doing pilots

SPEAKER_01: and we've been doing a lot of analysis is like how do we start seeing the realization

SPEAKER_01: of those additional value streams.

SPEAKER_01: Especially when potentially the foundational value stream is evolving as well.

SPEAKER_01: Because we need to make sure that we maintain that value because that's how we pass on those

SPEAKER_01: incentives to our customers.

SPEAKER_01: So we're already doing it today and how we're evolving the power direct program for example.

SPEAKER_01: But it's the same thing with battery storage and why we're looking at like with the commercial

SPEAKER_01: VPP or potentially even front of the meter residential batteries is this is where like

SPEAKER_01: where is that localized distribution grid value.

SPEAKER_01: We call them non-mariles alternatives or be able to sort of defer some grid investments.

SPEAKER_01: Sometimes the financial model needs that value stream to make it pencil to be in the black.

SPEAKER_01: That that bulk system value is not enough.

SPEAKER_01: And so those are the things that we're really doing to evolve our load flexibility programs.

Unknown: That's great.

SPEAKER_05: Another thing I know we've known for a minute maybe a yearish now that sodium ion batteries

SPEAKER_05: are coming and are potentially two to four times cheaper than the medium run than the

SPEAKER_05: lithium iron phosphate technology.

SPEAKER_05: And so I guess I would just say like let's make sure we're keeping a close eye on cost

SPEAKER_05: of equipment and making sure that we're balancing our incentive levels to match the actual cost

SPEAKER_05: make sure we're not inflating.

SPEAKER_05: We're not overly inflating costs.

SPEAKER_05: So something in my mind.

SPEAKER_01: It's definitely early but that's a problem for probably your one to three years away.

SPEAKER_05: Yeah you know it's it's important whether it's technology or just sort of the pricing

SPEAKER_01: like we would have said or actually we do say like if you look at international costs

SPEAKER_01: from a battery cell standpoint you know especially in the EV space it's like okay it's price

SPEAKER_01: parity to internal combustion engines but you know because they're manufactured overseas

SPEAKER_01: and things like that between terrorists and things like that it's just not the same the

SPEAKER_01: cost haven't come down for us to install them in the U.S.

SPEAKER_01: So those are those considerations that we watch very closely because with some of those

SPEAKER_01: changes once some of those things unlock the fact that some technologies already exist

SPEAKER_01: that are much less expensive that can unlock huge opportunities.

SPEAKER_01: Very good point.

SPEAKER_01: Okay next slide.

SPEAKER_01: Last portfolio green pricing.

SPEAKER_01: So last but not least is our green pricing portfolio.

SPEAKER_01: It provides our customers the opportunity to utilize and support renewable and carbon-free

SPEAKER_01: energy beyond our standard electricity mix and it's designed to increase our customers

SPEAKER_01: access to solar and renewable energy at reasonable cost to our customers.

SPEAKER_01: Next slide.

SPEAKER_01: So same theme as you can see from the charts the team has forecasted to come in very very

SPEAKER_01: close but slightly short of the goal for the year at 830 gigawatt hours sold versus the

SPEAKER_01: goal of 870 gigawatt hours.

SPEAKER_01: You know I think I mentioned it last year but we lost the mid-tier product at the end

SPEAKER_01: of last year that was that $8 per month option because we've been seeing that renewable costs

SPEAKER_01: are increasing coupled with the loss of the web-enabled sales channel for new electric

SPEAKER_01: service starts in that transition to SEW.

SPEAKER_01: So we're lagging a bit on our zero carbon plan trajectory given the challenge to catch

SPEAKER_01: up.

SPEAKER_01: That being said there's still stuff to celebrate and we have seen increases in participation

SPEAKER_01: in certain areas.

SPEAKER_01: So next slide.

SPEAKER_01: So we are coming in really really close to our goals for green energy and that's actually

SPEAKER_01: really significant thanks to a number of organizations.

SPEAKER_01: The contact center stepped up to increase enrollments through that channel given the

SPEAKER_01: loss of the web-based sales channel for new electric service.

SPEAKER_01: They increased enrollments by 51% year over year which was a huge jump.

SPEAKER_01: We are also appreciative of marketing and communications engagement teams who explored

SPEAKER_01: new marketing channels including outreach at local community events to support customer

SPEAKER_01: adoption in light of that loss of that web channel.

SPEAKER_01: So thank you thank you thank you.

SPEAKER_01: Something else to celebrate would you believe it?

SPEAKER_01: Greenergy is celebrating 30 years of national leadership in the voluntary green pricing

SPEAKER_01: space in the upcoming year.

SPEAKER_01: It's been 30 years so definitely something to celebrate given all that it's done for

SPEAKER_01: our community and for our customers and in the industry.

SPEAKER_01: We did significantly increase residential solar shares participation this year and we've

SPEAKER_01: actually added five more megawatts of solar supply to allow for additional customers to

SPEAKER_01: participate because we're getting ready to run out of solar resources.

SPEAKER_01: That being said you know we are watching the price for solar energy closely.

SPEAKER_01: I think you've heard from Brian Swan and others that the resource PPA costs are going up for

SPEAKER_01: solar PPAs and so we're managing participation and adding capacity in a cautious way to ensure

SPEAKER_01: that our solar supply matches up with that financial equation that sets accessible pricing

SPEAKER_01: for our customers because make like you know reminder residential solar shares we really

SPEAKER_01: target to our low and moderate income customers.

SPEAKER_01: So we want to make sure that that financial equation works so we're managing enrollments

SPEAKER_01: from that standpoint.

SPEAKER_01: Rachel?

SPEAKER_01: Yes.

Unknown: I'm not sure if we still have this program or if it's solar shares but when someone wants

SPEAKER_00: to have solar but you know the roof is shaded they can't cut the trees or they live in a

SPEAKER_00: rental.

SPEAKER_00: Is there a program for them to have solar?

Unknown: Yes.

SPEAKER_01: So residential solar shares is the program.

SPEAKER_01: We don't limit who can participate in residential solar shares.

SPEAKER_01: We do a lot of targeted marketing to low and moderate income customers for residential

SPEAKER_01: solar shares because often it's a challenge for them to be able to participate so we want

SPEAKER_01: to make sure that they are aware and have the ability to participate so we do see a

SPEAKER_01: large percentage of our residential solar shares customers participating that are low

SPEAKER_01: and moderate income but it is not limited to like we don't turn people away and say

SPEAKER_01: no you have to meet certain income qualifications in order to participate in residential solar

SPEAKER_01: shares.

SPEAKER_00: And have we capped solar shares because the person I was talking to said that she was

SPEAKER_00: told that there's it's not available anymore to her.

SPEAKER_01: I wonder if that might be neighborhood solar shares.

SPEAKER_01: Were they trying to build an ADU or something like that?

SPEAKER_00: They just wanted to get solar for their home but they couldn't have it up on the roof.

SPEAKER_01: Okay.

SPEAKER_01: So one thing that is closed is neighborhood solar shares.

SPEAKER_01: So neighborhood solar shares is the program that was approved by the California Energy

SPEAKER_01: Commission as like I think the only program that enabled builders to utilize neighborhood

SPEAKER_01: solar shares instead of installing solar on their rooftop.

SPEAKER_01: Now Title 24 has continued to evolve and the building standards have evolved so we actually

SPEAKER_01: sunset neighborhood solar shares but what we did is we introduced well we launched a

SPEAKER_01: program called multi-tenant solar.

SPEAKER_01: And really what multi-tenant solar is if you remember what virtual solar is was it allows

SPEAKER_01: a developer to put on solar and then utilize it to support multiple tenants.

SPEAKER_01: And so we used to only limit it to low income developments, low income multi-family so that

SPEAKER_01: was virtual solar.

SPEAKER_01: But now we've converted to multi-tenant solar.

SPEAKER_01: So we still have the low income option that has a little bit of a boost but then we also

SPEAKER_01: have a market rate option for that.

SPEAKER_01: And then for customers that have ADUs that had a lot of them have been taking advantage

SPEAKER_01: of neighborhood solar shares I think the building code had evolved a bit so that they

SPEAKER_01: had some options.

SPEAKER_01: So that might be it but if not happy to follow up and dig in a little bit deeper to understand

SPEAKER_01: what's going on.

Unknown: Thank you.

Unknown: Okay.

Unknown: Oh, was there a question?

SPEAKER_01: The Energy Commission changed the code so it basically doesn't, you can't qualify.

SPEAKER_05: I don't know exactly what the current code says but there's no current program.

SPEAKER_05: Right.

SPEAKER_05: And there's nothing on the horizon.

SPEAKER_01: Yeah, we were the only program at the time with the code and then after they changed

SPEAKER_01: the code we chose not to continue giving them all the cases.

SPEAKER_01: And I wouldn't testify.

SPEAKER_01: We've been able to have that get into place.

SPEAKER_05: So one general thought is again there's so many solar share neighborhood commercial

SPEAKER_05: residential and then green energy programs.

SPEAKER_05: I would think Steph might consider trying to rebrand these a little bit into clear names

SPEAKER_05: or categories just at the highest level comment because we see this every year and it gets

SPEAKER_05: confusing.

SPEAKER_05: Yes.

SPEAKER_05: And the actual question and all that commentary is is it the residential solar shares the

SPEAKER_05: currently open program where you try to remember will you pay a little bit more for the first

SPEAKER_05: like I don't know four or five years and then we give you a discount for like the next

SPEAKER_05: ten years or something like that.

SPEAKER_05: The residential solar shares program is where you pay in but I think you get savings from

SPEAKER_01: in that first year.

SPEAKER_01: So it's not like commercial solar shares where you paid higher for a while and then there's

SPEAKER_01: a crossover point.

Unknown: Okay.

SPEAKER_05: Which commercial shares.

SPEAKER_01: I'm going to google it.

SPEAKER_05: It's my dot org and it's residential solar shares and it has years one through ten and

SPEAKER_04: eleven through twenty but you are correct.

SPEAKER_04: The charges start the first year.

SPEAKER_04: So for the listening public we have a whole website that shows pricing and terms and shows

SPEAKER_04: you each year the bill credits and splits it up first ten years and the second twenty.

SPEAKER_04: Second set.

SPEAKER_05: I was right.

SPEAKER_05: It's year six.

SPEAKER_05: It switches over.

SPEAKER_04: Okay.

Unknown: It switches over.

SPEAKER_06: Rachel, to go along with the residential solar shares program I'm still waiting for

SPEAKER_06: us to offer vanity solar which is putting fake solar panels on your roof so you can

SPEAKER_06: brag to your friends.

SPEAKER_06: But maybe that's for a different time.

SPEAKER_01: Well we used to when I started solar shares what was that back in 2007 we gave you a little

SPEAKER_01: window cling so you could put it on there and say hey I'm a member of solar shares.

SPEAKER_06: Close enough and probably more practical.

SPEAKER_01: Okay so looking ahead I did a board presentation a month ago so not going to go into details

SPEAKER_01: but we're making progress in our demonstration projects for solar and storage for schools

SPEAKER_01: so appreciate all of you approving the PPA for grant union.

SPEAKER_01: Our climate advocate program is seeing opportunities to expand the projects that we fund to include

SPEAKER_01: nature based solutions which are projects aimed to protect, restore, benefit ecosystems

SPEAKER_01: by enhancing resilience, biodiversity and sustainability in our immediate environment.

SPEAKER_01: So the green energy team is actually working or the climate advocate team is working with

SPEAKER_01: Kathleen Ave on who is now part of the power gen team to develop project selection criteria

SPEAKER_01: to identify projects that have particular value to SMUD, our customers and the Sacramento

SPEAKER_01: region so we're actually really excited about that.

SPEAKER_01: And then finally we're looking ahead in program design as well as our customers needs evolved.

SPEAKER_01: We've heard from our commercial customers that they want to better understand how their

SPEAKER_01: energy use lines up with renewable and carbon free generation so the staff have been working

SPEAKER_01: on a tool that can show commercial customers with their sustainability goals, how their

SPEAKER_01: electrical load matches up with resources and are developing a program designed to support

SPEAKER_01: their evolving renewables needs.

SPEAKER_01: Okay next slide.

SPEAKER_01: So mentioning the climate advocate program the first project on the left is actually

SPEAKER_01: the climate advocate team and you see Kathleen there that is one of the projects they're

SPEAKER_01: looking to explore for the climate advocate program that's a nature based solution.

SPEAKER_01: This picture is the team at Lundberg family farms so you may enjoy their rice.

SPEAKER_01: The project involves rebuilding and rewetting the peat moss soil at Bacon Island by transitioning

SPEAKER_01: the crops from traditional alpha and corn to organic rice.

SPEAKER_01: We've identified that the attributes which are up to 100,000 metric tons of carbon reduced

SPEAKER_01: annually that are attractive so it could be our very first opportunity to support our

SPEAKER_01: nature based solution which is a growing motivator for environmentally focused people and organizations.

SPEAKER_01: The middle project is the country acres project which is a 344 megawatt system and the largest

SPEAKER_01: of its kind in our area.

SPEAKER_01: Some of the power from this project will be used to support some of our green pricing

SPEAKER_01: programs.

SPEAKER_01: And the last picture is a marketing piece that was launched around Earth Day.

SPEAKER_01: It was publicizing the efforts of our green energy program over the years as well as recognizing

SPEAKER_01: our commercial customers who are making a difference through their green energy participation.

SPEAKER_01: Next slide.

Unknown: Okay.

Unknown: Coming in the home stretch.

SPEAKER_01: So as we do every year, I wanted to share where we are in both applications and installations

SPEAKER_01: for customer behind the meter solar.

SPEAKER_01: As you can see from this slide, overall year to year we still see increases in both applications

SPEAKER_01: and installations when combining residential commercial solar from 2025 to 26.

SPEAKER_01: This is looking at January through August 23rd of each year.

SPEAKER_01: We still see that a significant part of this growth is due to new construction.

SPEAKER_01: During the January to August 23rd time period we've added approximately 18.4 megawatts of

SPEAKER_01: solar, the vast majority of that being residential.

SPEAKER_01: And as of the end of Q2 2026, over 67,000 customers have installed rooftop solar totaling

SPEAKER_01: nearly 435 megawatts.

SPEAKER_01: And then I didn't, it's not necessarily a purpose of this slide, but I did want to take

SPEAKER_01: a couple minutes just to mention balcony solar because I know the question came up.

SPEAKER_01: I think it was last week.

SPEAKER_01: And SB 868 was recently passed by the California legislature and is awaiting the governor's

SPEAKER_01: signature.

SPEAKER_01: That legislation exempts portable solar generation devices from all interconnection requirements.

SPEAKER_01: I know Laura answered a question about it last week, but I wanted to add a little bit

SPEAKER_01: more detail.

SPEAKER_01: We do recognize that plug-in solar can be a meaningful option for customers, but as

SPEAKER_01: Laura mentioned and reinforced is that current U.S. standards and codes are actually not

SPEAKER_01: fully ready for deployment as both EPRI and the underwriters labs have both identified

SPEAKER_01: gaps in the national electric code because the NEC assumes generation is permanent, hired,

SPEAKER_01: and connected to the house's electric panel rather than the electrical outlet.

SPEAKER_01: So SMUD is supporting standards development and customer education while maintaining a

SPEAKER_01: clear focus on safety, code compliance, and operational visibility.

SPEAKER_01: So SMUD is participating.

SPEAKER_01: EPRI actually has an effort on plug-in PIVV where we're going to benefit from their efforts

SPEAKER_01: from lab testing to inform the development of internal processes as well as educational

SPEAKER_01: materials for our customers.

SPEAKER_01: So happy to provide additional details as they come out, but just wanted to make sure

SPEAKER_01: I addressed that given a number of questions that have come up.

SPEAKER_00: Well, I just want to say thank you.

SPEAKER_00: I know I have beaten up our general manager about where's that memo?

SPEAKER_00: I want to see what's going on because I keep, you know, I keep running into people who have,

SPEAKER_00: they're all excited about the solar balcony thing.

SPEAKER_00: And so here's a question for you.

SPEAKER_00: The governor has a bill on his desk to allow for it.

SPEAKER_00: Why would the governor sign a bill that would allow for solar that isn't safe for someone's home?

SPEAKER_01: You know, and I can't contemplate what the governor will choose to do.

SPEAKER_01: I will just say that I think it's important for us as we think about these solutions.

SPEAKER_01: Like I said, this is something that does provide an opportunity, but we want our customers

SPEAKER_01: to be safe and we want our employees to be safe.

SPEAKER_01: And so for that, those are those things that we are looking for.

SPEAKER_01: I know there is a draft board memo, so we're getting close to finalizing it that has a

SPEAKER_01: lot more details that will share additional information with the board.

SPEAKER_00: Okay.

SPEAKER_00: Well, you know, I will keep waiting for it.

SPEAKER_00: But it bothers me that, you know, we have a piece of legislation that's going to the

SPEAKER_00: governor's desk.

SPEAKER_00: Even one of our board members, Heidi Sanborn, said last night that it does require UL certification.

SPEAKER_00: You know, it's very awkward for all of us to say, yes, there's solar balcony, but no, don't plug it in.

Unknown: And yet, you know, the legislature is saying that this is okay.

SPEAKER_00: I mean, we need to figure out what's going on.

SPEAKER_00: And maybe I'll know after I get that memo.

SPEAKER_00: But this is an issue that is really important to me.

SPEAKER_00: You know, it isn't good for SMUD to think of ourselves as a solar advocate and then,

SPEAKER_00: you know, basically back away from something that's sweeping the state.

SPEAKER_00: So we need to get on top of this.

SPEAKER_00: Yeah.

SPEAKER_01: So I would say we're backing away.

SPEAKER_01: I think that's actually why we chose to participate in the EPRI efforts.

SPEAKER_01: Because we want to really understand technically what needs to happen to make sure, like I

SPEAKER_01: said, both our customers and our employees are safe.

SPEAKER_01: So I just want to, like I said, we are already participating in that EPRI project to be able

SPEAKER_01: and recognizing others are as well to be able to address these things.

SPEAKER_03: Just a point of clarification as well, Laura Engway, CEO, General Manager, that the California

SPEAKER_03: SB 868, which is what's awaiting the Governor's signature, is really around the exemption

SPEAKER_03: of interconnection fees.

SPEAKER_03: So it's really not speaking to the safety or the requirements of those devices.

SPEAKER_03: It's really more around avoiding interconnection fees for those devices when they become available.

Unknown: Thank you for that clarification.

Unknown: Okay.

SPEAKER_01: So next slide.

SPEAKER_01: So in light of these challenges, how do we think about the path ahead?

SPEAKER_01: You've heard me a lot say we are trying really hard.

SPEAKER_01: We've got a lot of headwinds.

SPEAKER_01: But we're not exactly hitting the goal.

SPEAKER_01: So I've talked about the fact that the reality is we do need to rethink the goal trajectories.

SPEAKER_01: It's not to say we don't grow.

SPEAKER_01: And it's not to say that we don't continue to increase and encourage our customers to

SPEAKER_01: drop these technologies.

SPEAKER_01: But whether we're growing on that exponential curve that we had set back with the 2030 plan

SPEAKER_01: is something that we need to discuss and talk about and prioritize as we think about our

SPEAKER_01: investments, how to best serve our customers, help them with their affordability and energy

SPEAKER_01: needs, as well as continue supporting sustainability.

SPEAKER_01: This is consistent with what you've heard from the utility side as well.

SPEAKER_01: I know Josh and Brian came and spoke in April.

SPEAKER_01: And we faced headwinds from that standpoint that, frankly, we just didn't expect when

SPEAKER_01: we minted the zero carbon plan.

SPEAKER_01: So as we think about the path ahead, you know that we're going to be starting the integrated

SPEAKER_01: resources plan effort next month.

SPEAKER_01: And we'll have some consideration.

SPEAKER_01: So I do want to share with you some of the thoughts I have as you consider as we go through

SPEAKER_01: that process for those considerations to support our goals with sustainability, reliability

SPEAKER_01: and affordability.

SPEAKER_01: So next slide.

SPEAKER_01: So this is where, and you've heard me say about how you can say from an electrification

SPEAKER_01: standpoint, but as mentioned with the updated analysis, measurement verification, we need

SPEAKER_01: to continue to think about the offerings based upon the portfolio.

SPEAKER_01: And I have this what I call as the dollhouse view, right?

SPEAKER_01: Customers adopt multiple technologies.

SPEAKER_01: So we really need to think about the customer experience as they adopt these different technologies,

SPEAKER_01: but also help our customers understand what are the things that can best meet their needs.

SPEAKER_01: If they're looking for help with regards to managing energy costs, how do we share with

SPEAKER_01: them what are those things that will have the most impact and think about what they

SPEAKER_01: adopt when?

SPEAKER_01: This shows the comparison, and this is today, of a mixed fuel home versus an all-electric

SPEAKER_01: home.

SPEAKER_01: So assuming a baseline of electricity, that's the same on both.

SPEAKER_01: So you've got your air conditioning and your electric loads.

SPEAKER_01: Gas appliances use over 1200.

SPEAKER_01: Gas appliances, the gas to support your gas appliances is over $1200 a year.

SPEAKER_01: If customers convert to electric appliances, so heat pump space heating, heat pump water

SPEAKER_01: heating, induction cooking, customers can cut their energy costs from gas appliances

SPEAKER_01: in half.

SPEAKER_01: If they switch from gasoline for transportation to an EV, they can cut their energy costs

SPEAKER_01: to almost one-third of what they're paying today, resulting in overall cutting an average

SPEAKER_01: residential single-family homes energy wallet from $6846 a year to $3613 a year.

SPEAKER_01: That is really significant.

SPEAKER_01: When we talk about affordability, when we talk about the things that we can encourage

SPEAKER_01: our customers to do, electrification is really significant in helping our customers find

SPEAKER_01: ways to save on their energy bills.

SPEAKER_01: From a carbon emission standpoint, building electrification reduces carbon emissions by

SPEAKER_01: 1.4 metric tons per equivalent all-electric home and each EV by three metric tons.

SPEAKER_01: So EVs really, as we talked about loading order and which one is the number one priority,

SPEAKER_01: Dr. Ayala said last week when someone asked him the question, if you had a dollar, if

SPEAKER_01: you had money, where would you put your money?

SPEAKER_01: And he said, I would put my money on incentivizing electrification.

SPEAKER_01: So I want to make sure you think about, like as we think about where we go and how we prioritize

SPEAKER_01: things, incentivizing customers to switch to electrification can help our customers

SPEAKER_01: save on their energy bill and it can also be a cost-effective way for us to help reduce

SPEAKER_01: carbon emissions, particularly in those sectors that are really the largest emitting in our

SPEAKER_01: region.

SPEAKER_01: So next slide.

SPEAKER_01: But as you think about electrification, I think there's one other thing I want to leave

SPEAKER_01: you with.

SPEAKER_01: It is a key priority for the future as we think about decarbonization and supporting

SPEAKER_01: our customers in affordability.

SPEAKER_01: It allows us to replace fossil fuels in our homes and vehicles and buildings with increasing

SPEAKER_01: clean electricity.

SPEAKER_01: However, there are some headwinds.

SPEAKER_01: There are things that we have to think about as we think about increasing load growth from

SPEAKER_01: buildings, transportation and electric loads.

SPEAKER_01: Complementing electrification with load flexibility is important.

SPEAKER_01: I'll talk a lot more about this as we talk about our integrated distribution resources

SPEAKER_01: plan analysis in a future board meeting.

SPEAKER_01: But as we grow that load, customers are going to face high upfront costs.

SPEAKER_01: Scaling can create bottlenecks, both in capacity constraints on the grid as well as take time

SPEAKER_01: for permitting and interconnection, as well as face supply chain and workforce bottlenecks.

SPEAKER_01: But load flexibility can play a role in helping where we can partner with our customers to

SPEAKER_01: shift load off of the peak, improve grid utilization, defer grid upgrades and help optimize investments

SPEAKER_01: so that we can support affordability while supporting reliability.

SPEAKER_01: So net, to scale decarbonization successfully, we need electrification paired with load flexibility.

SPEAKER_01: So in conclusion, you've heard a lot about the external headwinds.

SPEAKER_01: And they have made a significant impact on our program participation towards goals.

SPEAKER_01: And the team has been working really, really hard on trying to find ways to get as close

SPEAKER_01: as we possibly can.

SPEAKER_01: But we still face significant challenges.

SPEAKER_01: That external funding loss is not something we can make up alone.

SPEAKER_01: But we do see that DERs remain still a large opportunity to afford affordability for customers

SPEAKER_01: and our community.

SPEAKER_01: And it helps enable them to participate in our decarbonization journal and make a significant

SPEAKER_01: difference.

SPEAKER_01: As we go into the IRP and talk about stakeholders and prioritization, those considerations are

SPEAKER_01: going to be important.

SPEAKER_01: And then again, to reiterate, the integrated distribution resources planning analysis,

SPEAKER_01: it is helping inform, as I said, we are going to need to figure out what those new trajectory

SPEAKER_01: goals are.

SPEAKER_01: We cannot achieve those exponential growth ones and still stay affordable.

SPEAKER_01: But it doesn't mean that we don't stop increasing what that looks like.

SPEAKER_01: And I think as we embark upon the next couple months in our journey with the IRP, that will

SPEAKER_01: be the opportunity to have that dialogue.

SPEAKER_01: So with that, that's the end of my presentation.

SPEAKER_01: I'm happy to take any additional questions.

SPEAKER_06: First of all, Rachel, thank you.

SPEAKER_06: And I know how much work went into this.

SPEAKER_06: So thank you to the rest of the team that put in some effort on this, which is pretty

SPEAKER_06: much company-wide, I'm assuming, at some level.

SPEAKER_06: We couldn't have anticipated some of the headwinds we're seeing now when we embarked on this

SPEAKER_06: journey.

SPEAKER_06: We've got at least a couple more years of them, I'm afraid.

SPEAKER_06: But after that, maybe things will get a little bit better, slowly but surely.

SPEAKER_06: So I remain hopeful.

SPEAKER_06: Actually achieving zero carbon by 2030, starting to look less and less likely.

SPEAKER_06: I think we keep the goal.

SPEAKER_06: We push as hard as we can, given the parameters that we've set up in terms of affordability and

SPEAKER_06: reliability.

SPEAKER_06: And we keep doing what we can do.

SPEAKER_06: And gosh, if we only reduce our carbon output by 80% or 90%, oh gosh, oh darn, I'm so upset.

SPEAKER_06: I will call that a win.

SPEAKER_06: I will call that a win.

Unknown: My question for you is, and this is one that I've been getting a lot out in public, and a few

SPEAKER_06: coming in via email from people I know, concerned about, and this gets back to the large load

SPEAKER_06: question, how much does new large load, i.e. data centers, how does that impact our 2030 carbon

SPEAKER_06: goal?

Unknown: And I think I know the answer right today.

SPEAKER_06: Well, how many of them are we going to have by 2030?

SPEAKER_06: I mean, is it 2 or 3?

SPEAKER_06: Or is it 10 or 20?

SPEAKER_06: And I don't think anybody envisions that many or that much load.

SPEAKER_06: And I mean, I know that 90% of the time we can absorb that load and it's not a problem.

SPEAKER_06: So let me, well, I'm sorry.

SPEAKER_06: I'm answering my own question.

SPEAKER_06: Let me ask you, how does the advent of additional data center load impact our 2030 zero carbon

SPEAKER_06: plan?

Unknown: So I know that there are others at SMUD that are probably a little bit closer to the data

SPEAKER_01: center conversation, so I might.

Unknown: Lauren Gway, CEO, General Manager.

SPEAKER_03: Obviously, the additional load means that we need additional generation, so it just adds

SPEAKER_03: to the amount of new resources that we need to bring online.

SPEAKER_03: Thank you.

Unknown: One quick question.

Unknown: If our customers have solar, they're helping us get to the 2030 plan, right?

SPEAKER_00: They don't have the battery to help us get to the 2030 zero carbon plan.

Unknown: Even though if they've got the money, you know, it'd be helpful.

SPEAKER_00: But that solar generation is helping us reach the 2030 goal, correct?

SPEAKER_00: Yes.

SPEAKER_01: Okay.

SPEAKER_00: That's why I hope we have more balcony solar.

Unknown: Rachel, could you, I know you said it, what's the top line number of our rooftop solar

SPEAKER_05: installs at the number at the moment?

SPEAKER_05: I think, you know, the cumulative number I have is as of Q2, and this is what's on

SPEAKER_01: SMUD.org, as of Q2, 2026, over 67,000 customers have installed rooftop solar totaling nearly

SPEAKER_01: 435 megawatts.

SPEAKER_01: 435, okay.

SPEAKER_01: Perfect.

SPEAKER_01: My general comment with this presentation is that we have a lot of customers that are

SPEAKER_05: not going to be able to get to the 2030 plan.

SPEAKER_05: My general comment with this presentation is because it's under the 2030 plan update,

SPEAKER_05: what we don't see is that metric tons avoided from all this electrification work.

SPEAKER_05: I went and pulled up the SD9 presentation from last week.

SPEAKER_05: When I added the building electrification with the transportation electrification, I got

SPEAKER_05: it.

SPEAKER_05: Am I understanding those numbers correctly?

SPEAKER_05: Yes.

SPEAKER_05: Because it helps me, knowing it's roughly 400,000 metric tons of carbon avoided, I can

SPEAKER_05: put that in some context.

SPEAKER_05: We're at 1.3, 1.4, 1.5 million metric tons.

SPEAKER_05: This is sort of get a feel for what we're potentially avoiding through these electrification

SPEAKER_05: programs.

SPEAKER_05: Is that a fair train of thought?

SPEAKER_05: For, yeah, for I think I said like what did I say, 2025 EVs are about 228,000 metric

SPEAKER_01: tons.

SPEAKER_01: 2026 we expect 270.

SPEAKER_01: Then on the building electrification side, yeah.

Unknown: Yeah, I think, yeah, Brian's numbers would be correct from his presentation.

Unknown: All right.

Unknown: Thank you.

SPEAKER_05: Thank you for tonight's presentation.

SPEAKER_05: It's great.

SPEAKER_01: Thank you.

Unknown: I'll send any comments.

Unknown: Okay.

Unknown: Thank you.

SPEAKER_04: Do we have any speakers?

SPEAKER_04: We do not.

Unknown: Okay.

Unknown: Any public comment, Brian, is not on the agenda?

Unknown: I don't see any hands, no.

SPEAKER_04: Okay.

Unknown: Great.

Unknown: And then I think there were a couple items of summary committee direction.

SPEAKER_04: Okay.

SPEAKER_04: Okay.

Unknown: Okay.

Unknown: Okay.

SPEAKER_04: Okay.

Unknown: Okay.

SPEAKER_04: Okay.

SPEAKER_04: Okay.

SPEAKER_04: Okay.

Unknown: Okay.

Unknown: Okay.

SPEAKER_04: Okay.

SPEAKER_04: Okay.

SPEAKER_04: Okay.

SPEAKER_04: Okay.

SPEAKER_04: Okay.

SPEAKER_04: Okay.

SPEAKER_04: Thank you.

Unknown: Thank you.

Unknown: Thank you, Brian.

Unknown: Thank you.

Unknown: Thank you,

SPEAKER_02: Thank you.