Energy Resources Customer Services Sep 17 2025

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SPEAKER_05: Five seconds, please.

Unknown: Five seconds.

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SPEAKER_08: Good evening and welcome to the Energy Resources and Customer Services Committee and Special

SPEAKER_08: Board Meeting of September 17, 2025.

SPEAKER_08: This meeting is being recorded and can be accessed on SMUD's website.

SPEAKER_08: Please remember to unmute your microphone when speaking in order that our virtual attendees

SPEAKER_08: may hear.

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SPEAKER_08: fill out a speaker's request form located on the table outside the room and hand it

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SPEAKER_08: when your name is announced during the public comment period.

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SPEAKER_08: ends.

SPEAKER_08: Will the Chief Legal Officer please conduct a roll call?

SPEAKER_03: Director Tamayo?

SPEAKER_08: Here.

SPEAKER_03: Dr. Sanborn?

Unknown: Chair Rose?

Unknown: I'm here.

Unknown: Director Tamayo and Chair Rose are present.

SPEAKER_03: Director Sanborn is absent.

SPEAKER_03: Also present are directors Bowie Thompson, Herber, Kurth and President Fishman.

SPEAKER_08: Perfect.

SPEAKER_08: Thank you.

SPEAKER_08: And then tonight, I don't want to run on tonight's agenda is provide the board an update on the

SPEAKER_08: status of customer programs under the 2030 zero carbon plan.

SPEAKER_08: And we have Rachel Wong, our Director of Distributed Energy Solutions.

SPEAKER_08: Welcome.

Unknown: Okay.

Unknown: Okay.

SPEAKER_09: Good evening, board.

SPEAKER_02: It's wonderful to see you.

SPEAKER_02: As Director Rose mentioned, my name is Rachel Wong.

SPEAKER_02: I'm the Director of Distributed Energy Solutions.

SPEAKER_02: Last year you may recall that Ed Hamzawi actually did this presentation and I think it was his

SPEAKER_02: last board meeting before he retired.

SPEAKER_02: So it was like, who's it going to be?

SPEAKER_02: Who's it going to be?

SPEAKER_02: So it's me.

SPEAKER_02: Surprise.

SPEAKER_02: So actually with Ed's retirement, they combined the strategy organization with the delivery

SPEAKER_02: organization.

SPEAKER_02: So now I have both under my purview, which is fantastic.

SPEAKER_02: So tonight I'm going to be sharing our progress towards our 2030 zero carbon plan through

SPEAKER_02: our customers and our different initiatives.

SPEAKER_02: And just before I start, it's definitely a privilege to have both the strategy all the

SPEAKER_02: way through the delivery organizations.

SPEAKER_02: But Distributed Energy Resources and customer programs are something that really literally

SPEAKER_02: touch every single part of the organization.

SPEAKER_02: So I started off by thinking, oh, who I need to appreciate and thank and recognize that

SPEAKER_02: they all contribute towards the outcomes of this.

SPEAKER_02: And it's just too many to list.

SPEAKER_02: So I just want to acknowledge all the different teams that really enable us to be able to

SPEAKER_02: deliver these amazing programs to our customers every day.

SPEAKER_02: Next slide.

SPEAKER_02: So I'm just going to start, you're very familiar with this slide, but recall that our zero

SPEAKER_02: carbon plan really places an importance of our customer programs and initiatives.

SPEAKER_02: And they actually play a role in multiple facets of our zero carbon plan.

SPEAKER_02: We've done so in a way to make sure that our customers are able to be part of the solution

SPEAKER_02: as we achieve zero carbon.

SPEAKER_02: So first, you know, Smud's customers are utilizing renewable energy and installing battery storage

SPEAKER_02: systems to support proven clean technology.

SPEAKER_02: We've launched a number of new technology and business model approaches where Distributed

SPEAKER_02: Energy Resources can help us achieve our zero carbon goal.

SPEAKER_02: We're working to decarbonize buildings and transportation as that's really the lowest

SPEAKER_02: hanging fruit as we think about carbon emissions reductions while affording to support energy

SPEAKER_02: affordability.

SPEAKER_02: We've leveraged grants and partnerships to help support these DER program efforts by

SPEAKER_02: adding external sources of funding to keep our rates low.

SPEAKER_02: And we're definitely working to maximize the community benefits from the efforts we're

SPEAKER_02: taking as it relates to inclusive economic development as well as making sure that we're

SPEAKER_02: supporting our under resourced communities.

SPEAKER_02: Next slide.

SPEAKER_02: So our zero carbon plan and our zero carbon customer programs fall within four major portfolios.

SPEAKER_02: And each of these I'll end up going into more detail.

SPEAKER_02: What I'll do is I'll talk about our progress towards our goals for our zero carbon plan.

SPEAKER_02: We'll talk about some key milestones that we've achieved in the last year.

SPEAKER_02: Talk about what we are looking ahead at relative to that portfolio and then I'll feature some

SPEAKER_02: of our key notable projects within that portfolio.

SPEAKER_02: So I will just start off with caveating that there are many, many wonderful projects to

SPEAKER_02: feature and it was very, very hard.

SPEAKER_02: It's like picking your favorite child, right?

SPEAKER_02: But really I tried to focus and identify a couple key projects.

SPEAKER_02: But definitely want to express my appreciation, especially to the board who have gone out

SPEAKER_02: and given the checks and celebrated all of those very many projects that have been very

SPEAKER_02: successful in contributing towards the delivery of our goals for all of these portfolios.

SPEAKER_02: The other thing to note is that we have a number of projects as well as programs that

SPEAKER_02: span multiple portfolios.

SPEAKER_02: So what I've done is I've put those programs in the portfolio in which it best aligns to

SPEAKER_02: the outcome.

SPEAKER_02: I actually probably changed one where Ed had it in one and I moved it to another.

SPEAKER_02: The example would be managed EV charging, which you would think is transportation electrification.

SPEAKER_02: But really from an outcome standpoint we are measuring its performance as we think about

SPEAKER_02: megawatts and capacity.

SPEAKER_02: So we are going to be talking about it tonight in load flexibility.

SPEAKER_02: But just to give you some ideas and you will see some of the projects that are featured

SPEAKER_02: that actually we have some customers that are participating in multiple of our program

SPEAKER_02: portfolios which really speak to them being highly engaged.

SPEAKER_02: So our four portfolios are building electrification energy efficiency, transportation electrification,

SPEAKER_02: energy resources and load flexibility, although I'm probably just going to call it load flexibility

SPEAKER_02: because I feel like all of these are distributed energy resources, and then finish up with

SPEAKER_02: our green pricing programs.

Unknown: Okay.

SPEAKER_02: Next slide.

SPEAKER_02: So building electrification and energy efficiency.

SPEAKER_02: So I did mention earlier that the lowest hanging fruit for reducing greenhouse gas emissions

SPEAKER_02: in our territory and in California really are transportation and buildings.

SPEAKER_02: And buildings is the number, the second largest source.

SPEAKER_02: And so really as we decarbonize our energy supply of SMUD, we are not only supporting

SPEAKER_02: the decarbonization of buildings, but we are actually eliminating direct combustion of

SPEAKER_02: fossil fuels through increasing the efficiency of electric equipment.

SPEAKER_02: And because our electricity rates are low compared to PG&E gas rates and the trajectory

SPEAKER_02: of the rate growth, because we have seen that building electrification is actually also

SPEAKER_02: the best way for our customers to actually save on their overall energy bill.

SPEAKER_02: Here to date, just to give you some perspective, from a carbon reduction saving standpoint,

SPEAKER_02: our building electrification and energy efficiency programs combined have saved a total of 119,638

SPEAKER_02: metric tons of carbon dioxide equivalent.

SPEAKER_02: By shifting our customers to efficient electric appliances, we're actually complementing our

SPEAKER_02: supply side renewable energy commitments and helping our customers save from a carbon emission

SPEAKER_02: saving standpoint.

SPEAKER_02: This is both by them being able to utilize more of those renewable energy resources

SPEAKER_02: within our portfolio, but also reducing the fossil fuel usage within their home.

SPEAKER_02: In terms of energy bill savings, and you've probably heard this statistic a couple times,

SPEAKER_02: but the transition from gas, water heating, and space heating stand to save an estimated

SPEAKER_02: average annual energy bill savings for our residential customers of up to $500 a year.

SPEAKER_02: And based upon what we're projecting rate increases to be, could grow to as high as

SPEAKER_02: an estimated $900 per year by 2030.

SPEAKER_02: Next slide.

SPEAKER_02: So this is the first set of charts, so I'm just going to explain what they are.

SPEAKER_02: So can I ask you a question about that, what you just said?

SPEAKER_08: We did a lot of that foundational work in the 2018 IRP.

SPEAKER_08: Is that something that we're going to go back and look at over the next year as we update

SPEAKER_08: our integrated resource planning?

SPEAKER_08: Yes.

SPEAKER_02: It's definitely an opportunity for us to look at that in some scenarios.

SPEAKER_02: Because it was that holistic approach, right, where we were looking at, okay, if we electrify,

SPEAKER_08: people are going to save off their gas bill, even though their electricity bill is going

SPEAKER_08: to go up, but they're going to save money overall, and we get air quality benefits,

SPEAKER_08: and so it's sort of just a win-win across the board.

SPEAKER_08: Exactly.

SPEAKER_02: Yeah, so definitely a priority to look at as we embark upon our IRP.

SPEAKER_02: So this is the first set of charts.

SPEAKER_02: You'll see this replicated across all the different portfolios, so I'm going to take

SPEAKER_02: a little bit of time to explain them, and they vary slightly as we go through the different

SPEAKER_02: portfolios.

SPEAKER_02: But on this chart, I want you to first look at the chart on the right-hand side.

SPEAKER_02: And so on the right-hand side, the lower curve that goes all the way to 2030 is the line

SPEAKER_02: of the goals that were developed as part of our zero carbon plan.

SPEAKER_02: So those were the numbers that we identified back in 2021 when we developed our zero carbon

SPEAKER_02: plan.

SPEAKER_02: And so what you can see in this chart is that our goal by 2030 is 154,000 all-electric

SPEAKER_02: equivalent homes.

SPEAKER_02: That's 112,000 as the incremental off of the baseline of 42,000.

SPEAKER_02: And what you can see from the shorter line or the red line with the red dot is that we

SPEAKER_02: are actually tracking, exceeding our zero carbon plan goals for the years, both where

SPEAKER_02: we ended 2024 as well as where we are forecasting for 2025.

SPEAKER_02: Now if you look at the graph on the left, you might be confused because you're like,

SPEAKER_02: okay, you say you're exceeding your goal on the right-hand side, but on the left-hand

SPEAKER_02: side, you're under the blue or the full line that goes to the end of the year.

SPEAKER_02: So why is that?

SPEAKER_02: So if you look at the numbers in our 2030 plan, we have been making really good progress

SPEAKER_02: in our EE and BE portfolios.

SPEAKER_02: And you can see that we ended the year last year at 68,865.

SPEAKER_02: And so we're smud and we like to stretch, but also we recognize that in order to really

SPEAKER_02: transform the market, we really need to continue to have an aggressive growth rate because

SPEAKER_02: that's really customers adopting, building electrification that will show policymakers

SPEAKER_02: that this is possible.

SPEAKER_02: So we actually set our annual goal for 2025, looking at what that incremental change is

SPEAKER_02: between 2024 and 2025 and tried to set it from that starting point of where we ended

SPEAKER_02: 2024.

SPEAKER_02: A little bit less because we knew that from a budgetary standpoint, how we were thinking

SPEAKER_02: about things.

SPEAKER_02: The other thing that I'll just mention that we started the year on is you recall that

SPEAKER_02: there's a lot of funding that was planned from the Inflation Reduction Act.

SPEAKER_02: And so one of the things we're doing as we are looking at those aggressive goals is we

SPEAKER_02: want to stretch the dollar as far as we can.

SPEAKER_02: And so one of the things we did in 2024 is we actually lowered our incentive starting

SPEAKER_02: the year in 2025 because we had the assumption of stacking the incentive, stacking on here

SPEAKER_02: incentives, stacking on tech incentives.

SPEAKER_02: And we talked about this with all of you when I came to talk to the board in June about

SPEAKER_02: energy efficiency and building electrification, but that's definitely some of the headwinds

SPEAKER_02: that we're facing.

SPEAKER_02: So while we are overall from these graphs basically showing we're on track or actually

SPEAKER_02: exceeding where we had planned to be from a zero carbon plan standpoint, just starting

SPEAKER_02: to foreshadow that we're facing some challenges as it relates to achieving our goals.

SPEAKER_02: Next slide.

SPEAKER_02: So we are facing headwinds, but there's definitely a lot to celebrate.

SPEAKER_02: So I want to kind of recognize all of those things.

SPEAKER_02: We will be issuing a press release soon to actually celebrate that our Advanced Home

SPEAKER_02: Solutions Program, which is our residential retrofit building electrification program,

SPEAKER_02: has actually hit a key milestone this year.

SPEAKER_02: So from the inception of our building electrification incentives back in 2018, we've actually achieved

SPEAKER_02: the installation of over 20,000 heat pumps in our service territory.

SPEAKER_02: And that's both space heating and water heating combined.

SPEAKER_02: So we're at about 15,000 heat pump HVAC conversions and over 5,000 heat pump water heater installations.

SPEAKER_02: It's definitely something to celebrate because as I mentioned, one of the key things that

SPEAKER_02: we've been trying to accomplish from a strategy standpoint is really driving that market transformation.

SPEAKER_02: And because of the differential in rates between our rates and PG&E's gas rates, you know,

SPEAKER_02: the CC is looking at us, which is like, hey, you guys have that financial incentive for

SPEAKER_02: customers to do building electrification.

SPEAKER_02: Are customers adopting?

SPEAKER_02: Do you have contractors in your network to be able to support this?

SPEAKER_02: Is the ecosystem there as they think about regulations relative to code?

SPEAKER_02: So speaking of contractors, our SMUD contractor network in the last 12 months has actually

SPEAKER_02: grown significantly.

SPEAKER_02: So we've actually added 100 contractors to new contractors to our contractor network

SPEAKER_02: to total now 340 approved contractors in our SMUD contractor network.

SPEAKER_02: Also from an accessibility standpoint, the directory for the contract network as well

SPEAKER_02: as the platform are accessible both by the contractors and our customers in 11 different

SPEAKER_02: languages.

SPEAKER_02: English, Spanish, Chinese, Arabic, Russian, French, Hindi, Filipino, Vietnamese, Mer and

SPEAKER_02: Japanese.

SPEAKER_02: So so far this year we've actually had 205 of the 340 contractors participate in either

SPEAKER_02: a residential or a commercial rebate programs.

SPEAKER_02: We've had over 30,000 customer searches performed and over 3,000 leads sent out to the contractors

Unknown: through the SMUD contractor network directory.

SPEAKER_02: So we're really definitely building that base of contractors that can help support this

SPEAKER_02: industry.

SPEAKER_02: The other thing that we've done is we now have automated surveys that are live for the

SPEAKER_02: contractor network.

SPEAKER_02: So contractors receive an automated email from each lead when the customer basically

SPEAKER_02: submits a lead.

SPEAKER_02: And the contractor can either accept or decline it.

SPEAKER_02: But now we're sending customer surveys automatically 30 days after a customer sends a lead.

SPEAKER_02: And that actually helps us collect feedback on the customer's experience with the contractor

SPEAKER_02: and the directory.

SPEAKER_02: That can be used in the contractor score factor.

SPEAKER_02: That's the algorithm to display the top three.

SPEAKER_02: And really helps us monitor how the customers are performing and the customer perceptions

SPEAKER_02: of those contractors.

SPEAKER_02: I know in past years there's been concern about, hey, are contractors not offering building

SPEAKER_02: electrification?

SPEAKER_02: This is a pathway for us to be able to collect information on every lead to the contractor

SPEAKER_02: network and how that customer experience is going.

SPEAKER_02: The other thing that we've added with that is that we've actually integrated with the

SPEAKER_02: Better Business Bureau.

SPEAKER_02: And that actually allows our customers to search and filter for those contractors that

SPEAKER_02: hold the Better Business Bureau.

SPEAKER_02: We've added from a customer experience standpoint that we launched in April is, as you know,

SPEAKER_02: as commercial customers want to do electrification, whether it's building electrification or transportation

SPEAKER_02: often they need to look at what the grid capacity evaluation work is to be able to understand

SPEAKER_02: if there's capacity to do that electrification.

SPEAKER_02: In April we launched a new process that actually leverages the Power Clerk platform that you're

SPEAKER_02: familiar with.

SPEAKER_02: It actually automates and streamlines this grid capacity evaluation review process.

SPEAKER_02: It's standardizing data capture.

SPEAKER_02: It's minimizing manual entry to reduce errors.

SPEAKER_02: The software actually ensures a consistent workflow and also ensures compliance across

SPEAKER_02: all the reviews of these requests.

SPEAKER_02: And it also provides near real-time tracking of the progress which really enables that

SPEAKER_02: transparency and accountability of moving things through the process.

SPEAKER_02: The platform enables seamless collaboration between my team, the strategic account advisors

SPEAKER_02: and customer contractors, customers, distribution planning.

SPEAKER_02: It's really helped to improve communication and operational efficiency.

SPEAKER_02: As we think about growth of volume to support this, being able to do so should be able to

SPEAKER_02: create some efficiencies to create more capacity to be able to address this.

SPEAKER_02: And so far as a result of this process improvement, evaluation times have been reduced by as much

SPEAKER_02: as 41%, which has enabled quicker project timelines and better handling of electrification

SPEAKER_02: protocols.

SPEAKER_02: And then the standardization has actually helped improve the data quality as we think

SPEAKER_02: about these and as well as enhanced accuracy in processing these evaluations.

SPEAKER_02: Another thing to sell...

SPEAKER_02: Oh, go ahead.

Unknown: Okay.

Unknown: The tool sounds really interesting.

SPEAKER_08: So when you're looking at that capacity analysis, is that for the individual house and the local

SPEAKER_08: transformer is connected to?

SPEAKER_08: Or are we looking at...

SPEAKER_08: So this is for commercial customers to see if any grid updates need to be made for commercial.

SPEAKER_08: Maybe if we visit the Power Clerk booth at Distribute Act, so show us the EMO.

SPEAKER_08: We're actually doing quite a bit with that.

SPEAKER_02: Another thing to celebrate is we've had...

SPEAKER_02: We started off obviously with residential building electrification incentives and then

SPEAKER_02: we moved into commercial.

SPEAKER_02: But commercial building electrification has definitely taken off.

SPEAKER_02: We've simplified the rebate structure to a per ton or per unit deemed incentive.

SPEAKER_02: We've actually also added infrastructure upgrade incentives that help customers make that transition

SPEAKER_02: to decarbonize.

SPEAKER_02: And we've gotten a lot of really good positive feedback from our contractors as well as customers

SPEAKER_02: and definitely seen a large influx of interest in new projects in the pipeline.

SPEAKER_02: We see this both with market rate commercial projects as well as we've seen actually a

SPEAKER_02: really large uptick with regards to commercial projects in the community impact pan as well,

SPEAKER_02: which I know Dr. Webster talked about a couple of weeks ago.

SPEAKER_02: That electrification momentum is really, really strong.

SPEAKER_02: Year to date, we have 22 businesses under the community impact plan that have completed

SPEAKER_02: projects with 78 measures finished.

SPEAKER_02: The first of two projects that were done in that garden land Northgate area.

SPEAKER_02: And the pipeline of projects have actually almost doubled since November of 2024, which

SPEAKER_02: has been driven by new project proposals.

SPEAKER_02: So what are key things that are going on relative to the heat fund adoption?

SPEAKER_02: Why are we below that annual planning goal?

SPEAKER_02: And really, as I mentioned, we started off the year with lower incentives because we

SPEAKER_02: were looking for stacking.

SPEAKER_02: And what we saw by the first quarter of the year is that we lost the HERA funding.

SPEAKER_02: So that's the home electrification and appliances rebate program, sorry, all the H's and the

SPEAKER_02: E's and the R's and the A's.

SPEAKER_02: That was the flow through from the Investment Recovery Act into the CEC for these rebates.

SPEAKER_02: So that has been reinstated, but in Northern California, I think single family and low

SPEAKER_02: and moderate income are still closed.

SPEAKER_02: So those are no longer available.

SPEAKER_02: One of the things we saw that because we were losing the stacking of funding is by July,

SPEAKER_02: we did see a slowdown.

SPEAKER_02: So by July, we actually increased our rebates by $500.

SPEAKER_02: We also saw tech get reinstated in that July timeframe.

SPEAKER_02: So we've seen an uptick, but we still don't think we're going to be able to make our annual

SPEAKER_02: goal for the year.

SPEAKER_02: So the other thing is we did see some increases in pricing because of tariffs.

SPEAKER_02: And you know, electrification is prone because heat pumps and H-track systems do rely heavily

SPEAKER_02: on imported compressors, electronics, and specialized materials.

SPEAKER_02: So that's something that's really impacting the market right now as well.

SPEAKER_02: So we have some headwinds.

SPEAKER_02: What are we going to do about it?

SPEAKER_02: One thing is continuing to educate our customers about the bill savings that they can achieve

SPEAKER_02: from building electrification.

SPEAKER_02: You may recall that the City of Sacramento launched the Zero Home Tool, which is an online

SPEAKER_02: tool that residential customers can put in their address and kind of get some recommendations

SPEAKER_02: with regards to measures that they can take, including electrification measures.

SPEAKER_02: So we'll be working to launch that Zero Home Tool across our service territory.

SPEAKER_02: We're going to be targeting customers even more than we do today that we might think

SPEAKER_02: have equipment that's at its end of useful life, so ready for replacement.

SPEAKER_02: We are scoping out how to advance a turnkey water heater program.

SPEAKER_02: We know that water heaters, about 90 percent of them, are replaced upon burnout.

SPEAKER_02: So seeing what opportunities are there to make that a much easier experience for our

SPEAKER_02: customers.

SPEAKER_02: We are looking at continued work to identify some kind of cost barriers.

SPEAKER_02: So I know we talked about financing in the past.

SPEAKER_02: We're looking at pays.

SPEAKER_02: So that's something that we've been exploring.

SPEAKER_02: And then, as you know, Title 24, the 2025 version, while it didn't mandate all electric,

SPEAKER_02: did make it more difficult not to build all electric.

SPEAKER_02: So we do need to evolve our new construction program, given the changes in the Title 24.

SPEAKER_02: Now we also know that at a statewide level there's already been indications they are

SPEAKER_02: not planning on updating Title 24 in 2028 for all electric.

SPEAKER_02: So that'll be some of the head's wins that we're facing from a policy perspective.

SPEAKER_02: And so as reported to the board in June, following our potential study analysis and

SPEAKER_02: additional analysis, we will be working in our integrated resources plan to identify

SPEAKER_02: what that new trajectory of goals are for EE and BE.

SPEAKER_08: So Rachel, you just gave a bunch of concrete details about how do you deal with the barriers.

SPEAKER_08: But a couple, I've heard that we've talked about our strike team.

SPEAKER_08: And so do we actively have GO teams with equipment ready to go to replace these hot water heaters,

SPEAKER_08: or is that something we're looking at adding?

SPEAKER_02: So we're looking at what would it take to do a turnkey heat pump water heating so you've

SPEAKER_02: got all the components right.

SPEAKER_02: Because normally when you change out your heat pump water, your water heater, you have

SPEAKER_02: a plumber, but you don't necessarily need electrical.

SPEAKER_02: So kind of putting the pieces together to have a certain turnaround time to be able

SPEAKER_02: to do so quick enough.

SPEAKER_02: Because when someone's water heater breaks, the first thing they want is a hot shower,

SPEAKER_02: and they're not willing to wait long enough.

SPEAKER_02: So it's trying to address all of those elements.

SPEAKER_02: So we do part of it, but there's definitely more pieces to try to align.

SPEAKER_02: We need to make sure we've got all the pieces and that they're done, they're orchestrated

SPEAKER_02: to be able to accomplish in a certain amount of time so that customers don't make a different

SPEAKER_02: decision.

SPEAKER_08: That's the reality of it.

SPEAKER_08: And then the other thing you'd mention, right, is financial barriers.

SPEAKER_08: What's alluded to, of course, is on-bill.

SPEAKER_08: Some kind of on-bill finance, which you've certainly seen the CPUC and the IOUs deep

SPEAKER_08: into that, but it's a very tricky policy area.

SPEAKER_08: What time of...

SPEAKER_08: Where does that thought process stand and what are the next steps to doing something

SPEAKER_08: like that?

SPEAKER_02: So we've been looking at it for quite some time, and we've looked at 0% financing, and

SPEAKER_02: then you had the bank crisis, and then we looked at buying down the interest rate.

SPEAKER_02: Now interest rates are high, and so we've kind of gone through those processes.

SPEAKER_02: We've definitely been watching the pay-as-you-save model in the different states that it's been

SPEAKER_02: going on.

SPEAKER_02: There's actually some pilots that are going on in California as well with the IOUs that's

SPEAKER_02: being funded by tech.

SPEAKER_02: However, those are, I think my understanding is, are being subsidized, right?

SPEAKER_02: So how do you find that cost equation?

SPEAKER_02: We've been running some financial models, and we're having the conversation internally,

SPEAKER_02: but I think there's a number of factors that we still have to kind of look at to see what

SPEAKER_02: would be the best approach from a financing or financing-like type instrument.

SPEAKER_02: So we're in the exploration phase, as I would say, and not because we're starting to explore.

SPEAKER_02: We've been exploring for a while, but really trying to nail down, like, what does this

SPEAKER_02: picture look like?

SPEAKER_02: What would the cost be?

SPEAKER_02: Are we recouping our costs with regards to that?

SPEAKER_02: What's the financial risk associated with lending out the funding?

SPEAKER_02: I don't know if lending's the right word, if it's pays, but all of those different elements

SPEAKER_02: are things that we need to work through.

SPEAKER_08: Because I know, like, the treasurer's office runs Financing Fair.

SPEAKER_08: Like, this stuff is all well developed, and so we certainly don't have to recreate the

SPEAKER_08: wheel to do that smud, but there's definitely financial implications and risks associated

SPEAKER_08: with any kind of lending as well.

SPEAKER_08: So I'll look forward to hearing continued updates about how that progresses.

SPEAKER_08: Sure.

Unknown: Okay.

SPEAKER_02: Okay.

SPEAKER_02: Any other questions?

Unknown: Do you have a question?

SPEAKER_08: Go ahead.

SPEAKER_04: Yeah, sorry.

SPEAKER_04: You said something with water heaters, right?

SPEAKER_04: Yeah, you don't replace it until it breaks, and when it breaks, you need it like now,

SPEAKER_04: and there's clean-up sometimes, and it's...

SPEAKER_04: So are we looking...

SPEAKER_04: I mean, can we offer an incentive for people...

SPEAKER_04: If your water heater is more than X number of years old, can the rebates or whatever

SPEAKER_04: incentives we have, will it apply to that?

SPEAKER_04: They're absolutely available.

SPEAKER_02: It's just more people don't choose to replace their water heater until it breaks.

SPEAKER_02: So when I say the 90%, it's people are choosing to wait until they break.

SPEAKER_02: 90% of people are choosing to wait.

SPEAKER_02: Anyone can take advantage of the water heater incentive.

SPEAKER_02: I think some people did actually proactively change out their water heaters for heat pump

SPEAKER_02: water heaters when the stacking of incentives...

SPEAKER_02: There was one, I think one contractor that was advertising, like, you can change out

SPEAKER_02: to heat pump water heater for $99.

SPEAKER_02: I don't know if you remember that, but that was definitely encouragement for a lot of

SPEAKER_02: people to say, like, hey, between the incentives at smud and stacking of incentives, you can

SPEAKER_02: get a really good deal to change out your water heater.

SPEAKER_02: So even if it's not broken, now is a great time to do it.

SPEAKER_02: So there is the possibility, but people tend to wait.

SPEAKER_04: Mine's about 22 years old.

SPEAKER_04: Well, might be time.

SPEAKER_02: Might be a good opportunity.

SPEAKER_04: Thank you.

SPEAKER_06: I just want to say that my spouse and I had a fight because the hot water heater, 30 years

SPEAKER_06: old.

SPEAKER_06: Oh, wow.

SPEAKER_06: It's broken?

SPEAKER_06: Why are we replacing it?

SPEAKER_06: It's replaced.

SPEAKER_06: So you obviously have all your personal experiences that contribute to the market research of

SPEAKER_02: how we think about the market potential.

SPEAKER_02: There's lots of ways to get into hot water with that kind of argument.

SPEAKER_02: I like your pun.

SPEAKER_02: That was a good one.

SPEAKER_02: That was a good one.

SPEAKER_02: Very good.

SPEAKER_02: Okay.

Unknown: Next slide.

Unknown: So this is the one that I wanted to talk about.

SPEAKER_02: Okay.

SPEAKER_02: Next slide.

SPEAKER_02: So this is the fun part where we get to feature some of the really cool projects that have

SPEAKER_02: been going on under these different portfolios.

SPEAKER_02: So we'll start with the one on the left.

SPEAKER_02: We've got Director Fishman celebrating the ribbon cutting for Aggie Square.

SPEAKER_02: So our integrated design solutions team actually started working with the customer back in

SPEAKER_02: 2021 to plan out these projects.

SPEAKER_02: And we actually have two buildings where both are on their own separate systems that

SPEAKER_02: are notable.

SPEAKER_02: So we've got the lifelong learning tower, the LLL, which is a large multi-story all-electric

SPEAKER_02: office building.

SPEAKER_02: And actually it's a really significant one.

SPEAKER_02: It's one project alone represents approximately 807 all-electric equivalent homes.

SPEAKER_02: So it's a pretty substantial contribution.

SPEAKER_02: This project actually was recognized for the Sacramento Business Journal as their real

SPEAKER_02: estate project of the year for 2025.

SPEAKER_02: The other project is also very, very notable.

SPEAKER_02: And the engineer on my team loves to talk about all the cool technology.

SPEAKER_02: So I got a couple of tidbits.

SPEAKER_02: So the Life Sciences Technology and Engineering East Building, LSTE-E, is actually the largest

SPEAKER_02: all-electric lab in our territory.

SPEAKER_02: It's got three large central heat pump water heaters that are actually used to generate

SPEAKER_02: domestic hot water really efficiently for the lab building.

SPEAKER_02: And what this project did is it actually implemented some of the largest air-to-water

SPEAKER_02: central heat pump water heaters serving a lab environment.

SPEAKER_02: So this project was actually recognized by the Advanced Water Heating Initiative from

SPEAKER_02: its innovation standpoint.

SPEAKER_02: On the right-hand side, we've got the Sacramento Food Bank.

SPEAKER_02: They actually took advantage of SMUD's custom retrofit program to install large, high-efficient

SPEAKER_02: walk-in cooler and freezer.

SPEAKER_02: And the reason why I featured this is because this is an example where we stack the incentives,

SPEAKER_02: right?

SPEAKER_02: It has program incentives for market rate for custom retrofit.

SPEAKER_02: We actually stack this on top of SHINE grant dollars through our Sustainable Communities

SPEAKER_02: program to support our community partners in really being able to go electric.

SPEAKER_02: And on the bottom right, we have Powell's Landing.

SPEAKER_02: So this was actually a motel-to-multi-family conversion.

SPEAKER_02: For 70 units, it provides permanent housing as well as wraparound essential services for

SPEAKER_02: people expressing homelessness.

SPEAKER_02: The site was actually a HOPE cooperative project and was supported by the state's Home Key

SPEAKER_02: Program as well as the city of Sacramento in addition to SMUD's multi-family program.

SPEAKER_02: So SMUD's multi-family program provided over $230,000 for the project's central heat pump

SPEAKER_02: water heater.

SPEAKER_02: And we also installed induction cooktops in each of the units within this facility.

SPEAKER_02: So very, very cool project.

Unknown: Okay.

SPEAKER_02: Next slide.

Unknown: Okay.

SPEAKER_02: The second portfolio is transportation electrification.

SPEAKER_02: So just like building electrification, transportation electrification supports our customers and

SPEAKER_02: our region by providing, again, both that carbon reduction, carbon emissions reduction

SPEAKER_02: as well as those energy savings for our customers while we're actually providing SMUD with beneficial

SPEAKER_02: load growth and revenue.

SPEAKER_02: In fact, there's been a lot of press about how data centers are going to be this huge

SPEAKER_02: new load for utilities.

SPEAKER_02: And I was just at EPRI last week.

SPEAKER_02: And they've actually showed this chart a couple of times.

SPEAKER_02: But they actually show that in the long run, electric vehicle load will supersede even

SPEAKER_02: data center loads in terms of how utilities need to think about growing load in their

SPEAKER_02: service territories.

SPEAKER_02: So transportation is the number one source of carbon emissions in California.

SPEAKER_02: So that switch to electric provides significant carbon savings.

SPEAKER_02: So in 2024, EVs in our service territory reduced emissions by 129,000 metric tons of carbon

SPEAKER_02: dioxide equivalent.

SPEAKER_02: And in 2025, we actually expect to reduce by a total of 324,000 metric tons, which is

SPEAKER_02: actually more than doubling the carbon emissions reduction from 2024 to 2025.

SPEAKER_02: SMUD EV owners in SMUD's territory pocketed a little bit over or almost $96 million in

SPEAKER_02: gas savings annually.

SPEAKER_02: So if you divide that by the number of customers who have EVs in our service territory, that's

SPEAKER_02: the equivalent of $1,452 per EV driver on an annual basis that's saving by switching

SPEAKER_02: from gas to electric.

SPEAKER_02: There have been some studies that have published that additional savings of up to $500 per

SPEAKER_02: year in service and maintenance of EVs because they have some reduced service and maintenance.

SPEAKER_02: I will counter and acknowledge that some EVs carry higher insurance premiums because when

SPEAKER_02: you do have to fix it, they cost more.

SPEAKER_02: So there is a bit of a caveat there.

SPEAKER_02: But definitely an opportunity for, again, significant carbon reduction while also providing

SPEAKER_02: energy bill savings to our customers.

SPEAKER_02: So next slide, please.

SPEAKER_02: So in this, on both charts, you see that we're actually exceeding our goal for light duty

SPEAKER_02: electric vehicles this year.

SPEAKER_02: And this is actually different than our presentation, the charts for building electrification, because

SPEAKER_02: we're not the only stakeholder that really influences EV adoption.

SPEAKER_02: And so we do so more in that building electrification space.

SPEAKER_02: You'll see the same in load flexibility as well.

SPEAKER_02: But that's why we kept the trajectory with regards to our zero carbon plan goals as well

SPEAKER_02: as our annual plan goals, even though we ended the year much higher than where we had our

SPEAKER_02: ZCP goals.

SPEAKER_02: So this chart actually shows data as of July, year to date.

SPEAKER_02: That's kind of consistent across the presentation.

SPEAKER_02: But our latest numbers that I pulled from August is that we're actually at 70,878 as

SPEAKER_02: of the end of August.

SPEAKER_02: So we've actually already exceeded our 70,000 light duty EV goal for 2025.

SPEAKER_02: So we're definitely watching very closely, as you know, from the federal policy changes

SPEAKER_02: and tax credit changes.

SPEAKER_02: The EV tax credit, the federal clean vehicle credit and the used EV credit expire at the

SPEAKER_02: end of this month.

SPEAKER_02: So September 30th, 2025.

SPEAKER_02: So I've been telling everybody that one of my staff found a lease for a Hyundai IONIQ

SPEAKER_02: for $80 a month.

SPEAKER_02: So there's definitely some deals to be had.

SPEAKER_02: But we will be watching very closely to see what the implications are, what the impacts

SPEAKER_02: are of losing out on that federal tax credit in terms of EV adoption.

SPEAKER_02: We do think that EV adoption, especially in the light duty space in California, is pretty

SPEAKER_02: robust.

SPEAKER_02: And so, but really, with all the federal policy changes, definitely for sure that medium and

SPEAKER_02: heavy duty electric vehicle electrification is likely going to be slowed.

SPEAKER_02: And we do have a board EV strategy panel that's scheduled for the beginning of November.

SPEAKER_02: So we'll be able to give you an early indication of kind of what we're seeing in the market

SPEAKER_02: when we come back to you in November.

Unknown: It'll be really early.

SPEAKER_02: It'll probably be very, very small, but yeah, very early.

SPEAKER_02: Okay, next slide.

SPEAKER_02: So you've already heard me say in many...

SPEAKER_02: While we do continue to support EV adoption, our focus really is about growing EV charging

SPEAKER_02: availability to support the EV growth, both from an available access standpoint, as well

SPEAKER_02: as just in general to support EV growth, and also managing the grid investments needed

SPEAKER_02: to support the EV load growth.

SPEAKER_02: So it's been important for us to focus and allocate funding in key priority areas.

SPEAKER_02: You may also know that the low carbon fuel standard credit market has been pretty depressed

SPEAKER_02: over the last several years.

SPEAKER_02: And so as we have run our programs and budgets relative to the value of that LCFS, it's been

SPEAKER_02: more and more difficult.

SPEAKER_02: And actually, in this year, we've always traditionally underspent, and so we had some money to roll

SPEAKER_02: over.

SPEAKER_02: But this year, we have actually spent all our money and spent our rollover.

SPEAKER_02: So when the credit value is at $48, you can understand why we are where we are.

SPEAKER_02: So we've been really focused as we think about where we're investing our money to support

SPEAKER_02: EVs, because it is important for us, but really wanting to make sure we're funneling our dollars

SPEAKER_02: in the most highest priority places.

SPEAKER_02: So while we do provide incentives for chargers still, we did drop the charger rebate this

SPEAKER_02: year from $500 to $100.

SPEAKER_02: We did maintain the circuit installation rebate at $500 to encourage that thoughtful

SPEAKER_02: installation of EV charging.

SPEAKER_02: We also reduced our commercial EV charger incentives this year, given we got a huge

SPEAKER_02: flurry of activity that actually ended up, we announced that we were reducing our incentives

SPEAKER_02: and we filled our pipeline through part of next year.

SPEAKER_02: So even with the reduced incentives, we're still seeing, we're still forecasted to significantly

SPEAKER_02: exceed our goals across all of our segments from an EV charger adoption standpoint, including

SPEAKER_02: our equity segment with income qualified customers.

SPEAKER_02: So in addition to our incentive programs, we're definitely making good progress with

SPEAKER_02: our CEC funded grants to install public EV chargers and strategic locations to support

SPEAKER_02: multifamily communities, transportation network providers, as well as disadvantaged low income

SPEAKER_02: and affordable housing communities.

SPEAKER_02: So our Reach 1 program, and I think James Frazier, when he comes and talks for SD10,

SPEAKER_02: will probably give more details on this, but you know, recall Reach 1 is where SMUD and

SPEAKER_02: mutual housing is going to deploy more than a hundred level two EV chargers, charging

SPEAKER_02: stations across multiple affordable housing communities, as well as pair with onsite,

SPEAKER_02: no cost car share, as well as specialized education.

SPEAKER_02: Reach 2, where SMUD is partnering with the Sacramento Metropolitan Air Quality Management

SPEAKER_02: District, Uber, and dozens of Sacramento area property owners and managers to deploy about

SPEAKER_02: 200 to 300 chargers at about 20 multifamily residential communities across Sacramento

SPEAKER_02: where 92% of them are located within disadvantaged low income or affordable housing communities.

SPEAKER_02: With that Reach 2, we're also going to be launching a SMUD EV app that will feature

SPEAKER_02: an integrated e-roaming platform, as well as offer the ability for us to offer variable

SPEAKER_02: rates for charging through our member charging networks, and that way we're able to encourage

SPEAKER_02: or provide lower cost public charging for low income customers, as well as transportation

SPEAKER_02: network drivers.

SPEAKER_02: We also have the FAST grant, which is putting in DC FAST chargers at the Sacramento Airport,

SPEAKER_02: Sacramento Valley Station, as well as CSUS to support EV charging infrastructure for

SPEAKER_02: those high mileage, on demand transportation services, car sharing, as well as car rental

SPEAKER_02: agencies.

SPEAKER_02: And all of these grant funded chargers, whether SMUD owns them or not, are planned to be co-branded

SPEAKER_02: as SMUD, because I know that question has come up before.

SPEAKER_02: We do continue to see robust growth in a residential EV rate participation, which definitely helps

SPEAKER_02: us mitigate charging on peak.

SPEAKER_02: And then I do want to talk to this e-fuel services number, just in case you're looking

SPEAKER_02: at it and saying, hey, why are the numbers lower than last year for the advisor reports

SPEAKER_02: and substantially lower even than the goal?

SPEAKER_02: So when we launched our e-fuel program, we had advisory services.

SPEAKER_02: We're actually using a third party consultant that's basically working with our customers

SPEAKER_02: in helping them as they consider fleet electrification, what are considerations relative to electrification

SPEAKER_02: and charging needs at their facility.

SPEAKER_02: That is very, very important to help grease the skids with regards to commercial customers

SPEAKER_02: that are thinking about electrifying their fleet.

SPEAKER_02: We also realized, as you can see in 2024, we did a lot of advisory reports and got no

SPEAKER_02: projects.

SPEAKER_02: And so from a cost standpoint was very, very expensive.

SPEAKER_02: And so again, from a focused how are we spending our dollars and stretching it, we actually

SPEAKER_02: moved to an online tool for our commercial customers that has actually not only helped

SPEAKER_02: support our commercial customers, but actually also provides tools for our strategic account

SPEAKER_02: advisors internally so they can work with their commercial accounts to be able to better

SPEAKER_02: advise them as they think about and consider transportation electrification.

SPEAKER_02: So those 10 advisor reports that you see, those are still sort of the legacy paying

SPEAKER_02: the third party consultant to do the analysis.

SPEAKER_02: And that's why the numbers are smaller.

SPEAKER_02: It doesn't count the numbers of online audits that the customers and the SAAs are doing

SPEAKER_02: themselves using the online tool.

SPEAKER_02: So yes.

SPEAKER_02: Poor stuff.

Unknown: I work in this area.

SPEAKER_08: So like the state of Washington, so California has our Cal Fleet Advisor product that's paid

SPEAKER_08: for through the HVIP funding.

SPEAKER_08: And it's basically advisory services, just like what we do through Black and Beach, which

SPEAKER_08: is our e-fuel.

SPEAKER_08: But it's an interesting question.

SPEAKER_08: I learned that the state of Washington has a similar advisory program, but they require

SPEAKER_08: actual signed contracts for you to take steps.

SPEAKER_08: And so I just throw that out there.

SPEAKER_08: Maybe we have sort of some gateways, right?

SPEAKER_08: If we're going to do some real actual engineering analysis, for example, and site plan kind

SPEAKER_08: of work that you have some more written contracting, some written guarantees that they're going

SPEAKER_08: to move forward.

SPEAKER_08: A little bit more teeth.

SPEAKER_08: Yeah.

SPEAKER_08: So I definitely think there's room for us to sort of think about what that might look

SPEAKER_08: like.

SPEAKER_08: I mean, the consultants, the professional engineers, they're costing us good money to

SPEAKER_08: have them do this work.

SPEAKER_08: And just because the plan isn't being implemented today doesn't mean that that plan won't get

SPEAKER_08: dusted off in a few years.

SPEAKER_08: That's true.

SPEAKER_08: And used to.

SPEAKER_08: But it's definitely an area to think about.

SPEAKER_08: We don't want to waste money.

SPEAKER_08: That's for sure.

SPEAKER_08: Right.

SPEAKER_08: All right.

SPEAKER_02: Anyway, my two cents.

SPEAKER_02: Yep.

SPEAKER_02: No, thank you.

SPEAKER_02: I appreciate the thoughts.

SPEAKER_02: Definitely we'll look into that.

SPEAKER_02: In continuation of our analysis about how to optimize grid investments to support our

SPEAKER_02: load growth from electrification, the strategy team's actually in the middle of integrated

SPEAKER_02: distribution resource planning, so IDRP.

SPEAKER_02: We actually last conducted this back in 2020, so it was actually pre-2030 zero carbon plan.

SPEAKER_02: And so it was a good time to update.

SPEAKER_02: We also, as part of the IDRP, have been doing a more granular analysis on EB loads, particularly

SPEAKER_02: for medium and heavy duty, which was done a little bit more of a higher level when we

SPEAKER_02: did this in 2020.

SPEAKER_02: And also looking at where load flexibility can help alleviate some of the grid's constraints.

SPEAKER_02: And so we'll also be using the IDRP analysis to help feed into the integrated resources

SPEAKER_02: planning work that Brian Swan's team will be leading in 2026.

SPEAKER_02: And so looking ahead, I did mention as part of Reach2, but just in general, we'll be launching

SPEAKER_02: the customer EV app early next year, aside our public charging network program that will

SPEAKER_02: provide pricing discounts for low income, as well as transportation network drivers

SPEAKER_02: in conjunction with the Reach2 grant.

SPEAKER_02: We'll also be developing program options for commercial EV fleet and workplace charging.

SPEAKER_02: And then finally, just as an FYI, you may recall that the statewide part of the carve-out

SPEAKER_02: of the low carbon fuel standard credit program is putting funds into the Clean Fuel Rewards

SPEAKER_02: program.

SPEAKER_02: You may recall that actually the Clean Fuel Rewards program used to be cached on the hood

SPEAKER_02: for light duty, and that is now switched to medium and heavy duty.

SPEAKER_02: So the CFR program is in the process of designing that new program as it relates to medium and

SPEAKER_02: heavy duty.

Unknown: Yes.

Unknown: A question.

SPEAKER_06: I just want to make sure that I'm understanding the chart right.

SPEAKER_06: So like if you look at the level two chargers, it says 2024, 611.

SPEAKER_06: So at the end of 2024, we had 611 in place.

SPEAKER_06: And that 500 is a new goal, right?

SPEAKER_06: Right.

SPEAKER_06: And so we are a little bit over half of it.

SPEAKER_06: But what you're saying is you hope to get to 650, and then we would have 1260.

SPEAKER_02: We would have 650 by the end of 2025.

SPEAKER_02: Right.

SPEAKER_06: But then if you added it...

SPEAKER_06: Oh, it's incremental.

SPEAKER_06: When you say we'll have 650 at the end of 2025, it's confusing to see the 611.

SPEAKER_06: Oh, versus cumulative or something like that.

SPEAKER_02: You'd rather see cumulative.

SPEAKER_02: So I am understanding it.

SPEAKER_06: Okay.

Unknown: Got it.

SPEAKER_02: Sure.

SPEAKER_02: Other questions?

Unknown: Okay.

SPEAKER_02: Next slide.

SPEAKER_02: So I mentioned at the beginning that we often have projects that span multiple projects.

SPEAKER_02: And this is a picture of Director Sanborn.

SPEAKER_02: I know she's not here tonight.

SPEAKER_02: But it's actually a picture of Director Sanborn providing the incentive check for CORE, which

SPEAKER_02: is the Consumnes Community Services District's new 54,620 square feet, two-story, all-electric

SPEAKER_02: recreation center.

SPEAKER_02: And I was looking actually at the staff's incentive document, which I have to sign off

SPEAKER_02: on each and every one of them, and it was actually modeled to have a 79% reduction in

SPEAKER_02: energy use as if they...

SPEAKER_02: I mean, this is new construction versus what they would have had if they would have put

SPEAKER_02: in gas.

SPEAKER_02: So just really, really remarkable with regards to the amount of reduction in energy use.

SPEAKER_02: So by utilizing electric heat pumps instead of gas.

SPEAKER_02: The other cool thing, which my staff told me about, is they implemented a central heat

SPEAKER_02: pump water heater into the general building exhaust where they actually implemented an

SPEAKER_02: outdoor unit into the indoors, and they placed it in a way that actually captures all the

SPEAKER_02: general building exhaust.

SPEAKER_02: It recovers the valuable building heat before it sends it outdoors, and that will actually

SPEAKER_02: help them reduce their energy use in the wintertime as they use that heat pump from a heating

SPEAKER_02: standpoint.

SPEAKER_02: So definitely looking for ways to be able to maximize how these technologies work to

SPEAKER_02: be able to minimize the amount of energy use.

SPEAKER_02: The other thing about this project that was great is that when they submitted the project,

SPEAKER_02: it was at 0% of the schematic design completed, so they came to SMUD early.

SPEAKER_02: And by coming to SMUD early, it really provided the opportunity for the program staff to be

SPEAKER_02: able to give the project some ideas and really consider some of these innovative features

SPEAKER_02: that has really been wonderful to enable them to have access to these sustainability options

SPEAKER_02: while helping them save on their energy bill.

SPEAKER_02: And then I found out just today from one of my staff was that they are actually also in

SPEAKER_02: the process, even though I haven't talked about load flexibility yet, to sign up for

SPEAKER_02: a PowerDirect program, so our commercial load flexibility program on top of that.

SPEAKER_02: So just a great example of a customer that's really participating in multiple facets, oh,

SPEAKER_02: sorry, and the whole reason why is because this is transportation electrification, is

SPEAKER_02: they actually also installed four Level 2 EV chargers under SMUD's commercial EV program.

SPEAKER_02: So really looking at all of these different things, and that's providing access to not

SPEAKER_02: only the people that come to this facility, but really providing community access to EV

Unknown: charging.

SPEAKER_02: So the top photo on the right highlights our commercial EV program again, and this is actually

SPEAKER_02: the Sacramento Food Bank.

SPEAKER_02: The reason why we featured this is they put in 10 new Level 2 electric vehicle chargers,

SPEAKER_02: but really they're using this not only for their fleets, so they're doing fleet electrification,

SPEAKER_02: but also for the public that come and visit the food bank.

SPEAKER_02: So it's really serving that dual purpose between public charging for the community,

SPEAKER_02: as well as supporting their fleet charging needs.

SPEAKER_02: And then the bottom photo on the right is actually a Bridgway Towers.

SPEAKER_02: It's a 15-story, 144-unit, multifamily site in downtown Sacramento.

SPEAKER_02: It actually offers residents convenient parking in the two-story parking garage that's actually

SPEAKER_02: next to the building.

SPEAKER_02: And because of the growing demand for at-home electric vehicle charging, which is often

SPEAKER_02: a constraint in multifamily communities, Bridgway actually partnered with SMUD as well

SPEAKER_02: as Phil Hopped Electric.

SPEAKER_02: They actually installed 47 Level 1 smart chargers.

SPEAKER_02: They're made by Orange Charger, and they are able to replenish about 40 miles of driving

SPEAKER_02: range per night.

SPEAKER_02: But really it was being able to provide this many chargers.

SPEAKER_02: And you think about it, because of the number of them, many of the EV drivers can actually

SPEAKER_02: have a dedicated charger instead of having to go and move their vehicle or switch off

SPEAKER_02: or fight for an EV charger.

SPEAKER_02: So really being able to utilize one for their own household.

SPEAKER_02: And so this was provided through a combination of incentives from SMUD, Sacramento Metro

SPEAKER_02: Air Quality Management District, and they were able to pave that way for their community

SPEAKER_02: to really transition into that zero emissions future for their building.

SPEAKER_06: Next slide.

SPEAKER_09: So...

SPEAKER_04: Real quick, Rachel.

SPEAKER_04: Just this afternoon, the Bridgway Towers project was recognized by the Business Environmental

SPEAKER_04: Resource Center as one of their awardees, and it's a really cool project.

SPEAKER_04: People that were getting more and more EVs and didn't know how to arrange for charging

SPEAKER_04: can be very expensive to install actual hard charging with the actual plugs.

SPEAKER_04: And they said, look, these smart plugs are just as good as people utilize the cord that

SPEAKER_04: comes with their own vehicle, and it just saves them a ton of money and the residents

SPEAKER_04: are all happy, and it's a very cool way to go.

SPEAKER_02: That's great.

SPEAKER_02: That's great to know.

SPEAKER_02: Yeah, it's a fantastic project.

Unknown: It's definitely like that education, right?

SPEAKER_08: We have conversations with people, right, that you can plug it into an outlet and get

SPEAKER_08: 40 or 50 miles at night.

SPEAKER_08: Depending on the amp, it's 15 or 20 amp amperage, right?

SPEAKER_08: Those four amps can make a significant difference too, but people don't realize that.

SPEAKER_08: Unless they're driving more than 50 miles a day, right?

SPEAKER_08: Just the wall, a regular wall outlet works.

SPEAKER_08: Something like this is great where everybody has access to an outlet.

SPEAKER_02: Yeah, that's that education and exposure, right, that most people wouldn't think that

SPEAKER_02: they could just get by with a level one charger.

SPEAKER_02: And usually with a facility, you have a handful of higher power chargers for people who need

SPEAKER_08: to top off, something like that.

SPEAKER_08: So glad to see that moving forward.

Unknown: Okay.

SPEAKER_02: Next slide, which is distributor energy resources, also known as load flexibility.

SPEAKER_02: So these are those programs that actually help shift and manage loads, which actually

SPEAKER_02: helps SMUD maximize the use of our renewable energy generation.

SPEAKER_02: It creates capacity where and when needed to support the bulk system or the localized

SPEAKER_02: grid.

SPEAKER_02: And in the future, it could actually help us take advantage of market participation

SPEAKER_02: to optimize resources.

SPEAKER_02: So you may recall in the zero carbon plan that achieving 364 megawatts was kind of basically

SPEAKER_02: the base to support SMUD's zero carbon efforts in order from new technologies and business

SPEAKER_02: models to help us achieve our zero carbon plan.

SPEAKER_02: So this is really how our customers manage their energy use and really use the investments

SPEAKER_02: that they've made in devices and help us to be able to maximize our utilization of those

SPEAKER_02: renewable energy resources, as well as potentially provide an alternative to investment in utility

SPEAKER_02: scale resources, if that's cost competitive as a comparison.

SPEAKER_02: Next slide.

SPEAKER_02: So similar to building electrification, we are expecting to exceed our zero carbon plan

SPEAKER_02: goal for 2025.

SPEAKER_02: We are falling a bit short of our annual plan goal.

SPEAKER_02: And this is a very similar situation to BE where you can see that we're actually above

SPEAKER_02: goal for 2025.

SPEAKER_02: And what we did is because we were trending above goal, we set ourselves an incremental

SPEAKER_02: goal and then we actually even bumped it up a little bit on top of that because we were

SPEAKER_02: hoping that as we increased our storage incentives, our residential storage incentives for our

SPEAKER_02: virtual power plant, that we'd actually get a lot of uptake.

SPEAKER_02: Unfortunately, Tesla actually had some supply chain issues, so it didn't actually have

SPEAKER_02: as much battery availability until about Q2 of 2025.

SPEAKER_02: Obviously there's been a lot of economic uncertainty and also some political considerations as

SPEAKER_02: we think about battery storage adoption.

SPEAKER_02: And so we, like I said, are still on track to meet our zero carbon goal trajectory for

SPEAKER_02: load flexibility, but just are not exactly hitting that incremental goal.

SPEAKER_02: But we had really set it as a stretch goal because we recognized that there was that

SPEAKER_02: opportunity as we were going to expand our residential solar and storage VPP.

SPEAKER_02: Next slide.

SPEAKER_02: So across our load flexibility portfolio, we have a lot of programs.

SPEAKER_02: You can see that here.

SPEAKER_02: We are making a lot of great progress with regards to our thermostat program.

SPEAKER_02: We're forecasting to be up at about 30 megawatts by the end of the year through the participation

SPEAKER_02: of 30,000 thermostats.

SPEAKER_02: We've also achieved almost five megawatts of installed capacity through our My Energy

SPEAKER_02: Optimizer Partner Plus program with Tesla, which is who we started out with.

SPEAKER_02: But as mentioned, we did experience some headwinds as we faced some challenges relative to economic

SPEAKER_02: conditions as well as the supply chain issues.

SPEAKER_02: We did celebrate that we were able to expand our battery storage incentives to five additional

SPEAKER_02: battery storage OEMs, which was really about providing our customers more choice as they

SPEAKER_02: consider installing battery storage.

SPEAKER_02: But because of the slower uptake, we expect to keep the elevated battery storage incentives

SPEAKER_02: available through the end of the year.

SPEAKER_02: So we thought we might possibly run out, but we do have capacity to be able to support

SPEAKER_02: it to the end of the year.

SPEAKER_02: The other thing we've been doing, like I said, in sort of a common theme is really being

SPEAKER_02: focused as we look at our programs within our portfolio.

SPEAKER_02: We'll see that our P Conserve program, which is our next generation air conditioning load

SPEAKER_02: management program that leverages those two-way switches, the participation has stayed flat,

SPEAKER_02: and that's actually been deliberate.

SPEAKER_02: We did receive measurement and verification results and did see high customer satisfaction,

SPEAKER_02: but also saw that from a cost competitiveness standpoint for the resource, it really wasn't

SPEAKER_02: there.

SPEAKER_02: And so as a result of that learning, we actually made the decision to stop the program for new

SPEAKER_02: enrollments.

SPEAKER_02: We are in the process of figuring out what do we want to do with our existing customers

SPEAKER_02: that already have the devices and we've already made that investment, and we'll be figuring

SPEAKER_02: that out soon.

SPEAKER_02: What does that actually mean?

SPEAKER_08: Does that mean that we weren't seeing the actual results when we went to have an event

SPEAKER_08: where we're not seeing energy reduction savings, for example?

SPEAKER_02: It's a combination of the cost, right?

SPEAKER_02: So we have to invest in the device.

SPEAKER_02: We have to invest in the installation of the device.

SPEAKER_02: We have what are the incentives that we're sending to get when we call an event, and

SPEAKER_02: that total cost that we ended up investing in order to be able to get that load flexibility

SPEAKER_02: capacity did not end up being as cost competitive as we thought it would be, and then as we

SPEAKER_02: look at that resource relative to other resources, it wasn't as competitive either.

SPEAKER_02: So I think that's where we do look at the portfolio.

SPEAKER_02: We do still want how do we think about customer segmentation and things like that, but we

SPEAKER_02: are seeing a lot more smart thermostat penetration, and so therefore that was one area of, hey,

SPEAKER_02: how are certain customers who don't have access to Wi-Fi able to participate, but we're seeing

SPEAKER_02: a lot more smart thermostat penetration.

SPEAKER_02: So if we can accommodate that customer segment in different ways, then that's how we think

SPEAKER_02: through those kinds of decisions.

SPEAKER_08: I know at one point, and this was at least a couple years ago, where they were the big

SPEAKER_08: office building downtown, and it was a hot day, and they were going to have the demand

SPEAKER_08: response event, and it makes the building warm.

SPEAKER_08: People would argue it's uncomfortably warm, so they told all the staff to stay home, right?

SPEAKER_08: So then we have like three or four thousand, what's going on, potentially three or four

SPEAKER_08: thousand staff in that building, right, who are now not coming and being in one central

SPEAKER_08: place.

SPEAKER_08: So it definitely, I could understand how the M&V reports could find results, right, when

SPEAKER_08: they start digging in, but it was not expected.

SPEAKER_08: Yeah, and I think that's really key, and why M&V is so important is to, you know, we go

SPEAKER_02: in with business models that we model, and we have hypotheses of, but then how do we

SPEAKER_02: actually measure to see what realizable load shift savings, at what cost, is really what

SPEAKER_02: guides us on how we make decision making relative to our portfolio, and continually culling

SPEAKER_02: our portfolio as needed.

SPEAKER_02: Looking ahead, one of the things is that we've launched some efforts internally to define

SPEAKER_02: some operational parameters and characteristics needed for DERs to participate in markets.

SPEAKER_02: We're not there yet, but actually one of our staff is participating in the KISO's demand

SPEAKER_02: and distribution energy market integration initiative working group.

SPEAKER_02: I forget what the acronym, how it's pronounced, but it's a really, really long acronym, and

SPEAKER_02: so just recognizing we're always looking ahead, right, as we think about DER possibilities

SPEAKER_02: to participate in markets, what are the parameters, what do the operational teams need in order

SPEAKER_02: to be able to deliver upon that, and having that conversation internally now to be able

SPEAKER_02: to scope that out so that we're really prepared when the time comes and that availability

SPEAKER_02: is there.

SPEAKER_02: The other thing we're doing as we look ahead is that we've been running our load flexibility

SPEAKER_02: programs pretty much a single program with different vendors.

SPEAKER_02: We've got one vendor that runs our thermostat program.

SPEAKER_02: We've got one vendor that is our storage program, and we recognize there's an opportunity,

SPEAKER_02: especially as customers participate with multiple technologies, to be able to consolidate that

SPEAKER_02: to a one vendor approach.

SPEAKER_02: So as we go out for a solicitation soon, we'll be looking for a one vendor approach for multiple

SPEAKER_02: DER management.

SPEAKER_02: The other thing we're doing is we're working to transition our residential managed EV charging

SPEAKER_02: pilot, which has been in pilot for a couple of years.

SPEAKER_02: We've been working with OB-GIP as well as OptiWatts, but we've actually planning on

SPEAKER_02: moving that to an operational program.

SPEAKER_02: We've learned what we've learned from the pilots, and we believe we're at the stage

SPEAKER_02: now that we can design our operational program.

SPEAKER_02: We also have a high penetration of EVs, and so it's really a good time to make sure that

SPEAKER_02: customers are used to thinking about managed EV charging when they have an EV.

SPEAKER_02: Just as an FYI of why you see the year-to-date and the forecast is much lower than the goal

SPEAKER_02: for 2025, it's just that we've extended our procurement process.

SPEAKER_02: So it's pushed out our launch date that new enrollments of 350 was supposed to be on the

SPEAKER_02: new system, but we're planning on carrying over our customers that exist in our pilot

SPEAKER_02: into when we operationalize the managed EV charging pilot.

SPEAKER_02: Also coming ahead is we are working on a commercial VPP pilot that will open up battery storage

SPEAKER_02: incentives to targeted commercial customers where the location of that customer-cited

SPEAKER_02: battery can help potentially mitigate some grid investments that we'll be making in the

SPEAKER_02: future so that we have that value proposition or able to test that out.

SPEAKER_02: And then, like I said, as we think about sort of watching our portfolio and seeing what's

SPEAKER_02: working, what's not working, what's cost-effective, we're going to continue to scale our programs

SPEAKER_02: as we see fit relative to the costs and the outcomes that we're driving.

SPEAKER_02: And you see that with our decisions about not encouraging more participation of Power

SPEAKER_02: Direct, but also that we're doing some evolution with our... sorry, with P-conserve, and that

SPEAKER_02: we're also evolving our commercial Power Direct program as we look at what are those time

SPEAKER_02: periods in which there's the highest value for the load flexibility and how that's shifting

SPEAKER_02: as we think about our resource mix.

SPEAKER_02: Next slide.

SPEAKER_02: So some pictures about load flexibility.

SPEAKER_02: So I'm actually going to start to the right this time, and the reason why is those two

SPEAKER_02: Tesla Powerwalls are Ed Hamzawi's Tesla Powerwalls.

SPEAKER_02: And so I had to feature this in this board presentation.

SPEAKER_02: So Ed was... he started participating.

SPEAKER_02: Once we bumped up the incentives, he got two Tesla Powerwalls.

SPEAKER_02: He also fell into the supply chain issues of not getting his battery right when he started

SPEAKER_02: ordering it, so he actually had to wait.

SPEAKER_02: I say this a little tongue in cheek is that the team has enjoyed the feedback that Ed

SPEAKER_02: has provided as a customer, so it's been good for him to see that experience and for our

SPEAKER_02: team to see him in that experience as well.

SPEAKER_02: But yeah, it's just a great picture and a little bit of homage to Ed.

Unknown: Remember, he got a new house relatively soon around when he... yeah, it looks pretty empty,

SPEAKER_02: doesn't it?

Unknown: Yeah, he probably has his way to the...

SPEAKER_02: I'm just going to have to clean up the mike garage.

SPEAKER_02: Rachel, I want to ask...

SPEAKER_08: I was just going to hang that in front of me.

SPEAKER_08: The $10,000, right, we went up to big time, and you said that we're going to keep it that...

SPEAKER_08: the intention right now is to keep it this way through the end of the year.

SPEAKER_02: To the end of the year.

SPEAKER_08: What is the... are we going to reevaluate that level and look at the numbers after that?

SPEAKER_08: Yes.

SPEAKER_08: And what's that sort of timing with that piece of connection?

SPEAKER_08: Well, I mean, we had... when we made the decision to increase the battery storage incentive

SPEAKER_02: to up to $5,000 each, up to $10,000 for two, we had a number, I think, of 1,500 installations

SPEAKER_02: that we were targeting.

SPEAKER_02: So we're not there yet.

SPEAKER_02: I think the other thing is continually to look at, like, what's the market pricing of battery

SPEAKER_02: storage?

SPEAKER_02: What's the value of the capacity that we're getting from the battery storage?

SPEAKER_02: What is the tipping point in which it enables customers to adopt battery storage?

SPEAKER_02: So those are all the typical questions we ask ourselves when we design the incentive,

SPEAKER_02: and when we evaluate when's the right time.

SPEAKER_02: And if you look at our battery storage incentive program design, all the way back to what legislation

SPEAKER_02: it was, I can't remember off the top of my head, but where we were required to install

SPEAKER_02: certain battery storage, the intent has always been to reduce the incentives, the upfront

SPEAKER_02: incentives, and really use the capacity payment as the payment mechanism to value the capacity.

SPEAKER_02: So some of that upfront incentive is really that market transformation and also helping

SPEAKER_02: support, you know, our solar and storage rate.

SPEAKER_02: But the intent is to decrease those incentives over time.

SPEAKER_02: In the middle, we actually have a picture of the installation of the OpenADR grid link

SPEAKER_02: device for a new PowerDirect customer that we enrolled this year, HP Hood.

SPEAKER_02: So they participate in PowerDirect by shutting down three 50 horsepower air compressors,

SPEAKER_02: as well as a combination of air and ammonia compressors, depending upon their production

SPEAKER_02: schedules.

SPEAKER_02: But to date, in 2025, they have, on average, overperformed expectations at 119 percent,

SPEAKER_02: and they've reduced their usage by over one megawatt at times during PowerDirect events.

SPEAKER_02: I know it was a relatively cool summer, but definitely great to see our customers participate.

SPEAKER_02: And then on the left, it's just another example of a cross-portfolio customer initiative,

SPEAKER_02: where we're actually testing out peak-focused home electricity reports, aside our traditional

SPEAKER_02: home electricity reports that are focused on energy use, to see if that provides any

SPEAKER_02: opportunities to help our customers better manage their peak usage.

Unknown: Okay, next slide.

Unknown: Okay, so this is the last portfolio, so we're in the home stretch, is our green pricing

SPEAKER_02: portfolios.

SPEAKER_02: And this really provides our customers the opportunity to utilize and support renewable

SPEAKER_02: and carbon-free energy beyond our standard electricity mix.

SPEAKER_02: Next slide.

SPEAKER_02: So in the case of our green pricing programs, this is actually the opposite of some of the

SPEAKER_02: things we've seen, is that we're actually on track to hit our annual goal on the left,

SPEAKER_02: but if you look at our zero carbon plan gigawatt hour goal on the right, we're actually forecasted

SPEAKER_02: to be below for 2025.

SPEAKER_02: The rationale before of this is when we decided to set our annual planning goals for 2025,

SPEAKER_02: we had already made the decision to remove that middle tier of the residential green

SPEAKER_02: energy options, so that was that $8 and $10 option, and it really created two options,

SPEAKER_02: which is the $3 option and the $18 option.

SPEAKER_02: And those are pretty big, it's a pretty wide range of options.

SPEAKER_02: And as such, while we have seen an increase in green energy participants in the number,

SPEAKER_02: we have seen a number of green energy participants go down to that lower dollar value, so we

SPEAKER_02: don't have as much gigawatt hours.

SPEAKER_02: The other thing is, is we have had a more mild summer, so there just have not been as

SPEAKER_02: many gigawatt hours sold.

SPEAKER_02: So just some considerations as we continue on to look at the results.

SPEAKER_02: Yes.

SPEAKER_04: Rachel, as we start succeeding more and more with our zero carbon goal, then our greater

SPEAKER_04: percentage of our energy is coming from renewable resources or at least zero carbon resources.

SPEAKER_04: There's going to be less and less incentive for people to participate in green energy, right?

SPEAKER_04: Yes.

SPEAKER_04: At what point do we sort of, I mean, it's like the state is now not giving people with

SPEAKER_04: EVs access to the HOV lanes anymore.

SPEAKER_02: Right.

SPEAKER_04: There's so many, what's the point?

SPEAKER_04: So are we getting close to that?

SPEAKER_02: So I think, you know, it's a good question, it's definitely been something on our minds,

SPEAKER_02: and I think this has been the interesting thing about having the strategy organization

SPEAKER_02: with the delivery organization, is we really need to take a step back and look at that

SPEAKER_02: overall green pricing portfolio.

SPEAKER_02: So I'll go through, you know, it's not just green energy, but multiple programs in there

SPEAKER_02: is like, what are really the key outcomes that we're trying to drive from this program?

SPEAKER_02: You know, we have had a very much a mass market participation in residential green energy,

SPEAKER_02: but is that sustainable?

SPEAKER_02: Actually our marketing, our market research team did some analysis looking, they repeated

SPEAKER_02: some market research that they did back in, I think it was 2019 and just did it recently.

SPEAKER_02: And what you see is the, like the, I don't know if it's like proclivity to adopt is lower

SPEAKER_02: at all price points.

SPEAKER_02: Now some of that might be a snapshot in time, we've got a lot of economic uncertainty and

SPEAKER_02: things like that, but some of it might be is like, hey, a large percentage of my power

SPEAKER_02: is already carbon free.

SPEAKER_02: So it's definitely an opportunity for us to look at it, take a step back from a strategy

SPEAKER_02: and planning standpoint and say, what are we really trying to accomplish with this portfolio?

SPEAKER_02: What do we want to provide for our customers?

SPEAKER_02: And it might become more niche than what it is today.

SPEAKER_02: It might not, but I think those are those things of how do we think about the programs

SPEAKER_02: that we have?

SPEAKER_02: What are, this is the continual culling of the portfolio, right?

SPEAKER_02: What are the new programs we might introduce?

SPEAKER_02: I'll mention one thing in the next slide, which is Department of General Services.

SPEAKER_02: And we've been seeing a couple of large commercial customers that have been interested in better

SPEAKER_02: understanding their load profile and how hourly renewable energy generation matches up with

SPEAKER_02: that.

SPEAKER_02: So one thing we're doing with them as a pilot, just to look at it, to see like how close does

SPEAKER_02: it match up?

SPEAKER_02: And what we're hearing, I was at EPRI last week, is a number of the hyperscalers are

SPEAKER_02: actually very interested at looking at renewable energy to support the load that they have

SPEAKER_02: eventually, right?

SPEAKER_02: They obviously need power quickly, but they also are interested because of sustainability

SPEAKER_02: goals at some point to consider that renewable energy piece.

SPEAKER_02: So those are things that we're watching that might be a new thing that we might introduce

SPEAKER_02: into the portfolio.

SPEAKER_02: Right now we're just doing that test with DGS just looking at the data, but to see how

SPEAKER_02: other commercial customers might find interest.

SPEAKER_02: But it is definitely a time to examine that and to look at that for sure.

SPEAKER_08: So Rachel, I will tread into the telling you how to do your work, which the board isn't

SPEAKER_08: supposed to do.

SPEAKER_08: But I really think we need to think about this to a behavioral psychology lens, right?

SPEAKER_08: And I was brainstorming at Light Distributed Tech.

SPEAKER_08: I said, well, okay, what if we give everybody who signs up for green energy five days per

SPEAKER_08: summer that they can get a vacation from the time of use schedule, right?

SPEAKER_08: We're just thinking about how people value things, right?

SPEAKER_08: Because it's not necessarily completely homo economicus logical how people value things,

SPEAKER_08: but I definitely think we need to think about how you gamify the green pricing program versus

SPEAKER_08: all the engineers coming up with a whole bunch of we can attach to this circuit to that circuit,

SPEAKER_08: right?

SPEAKER_08: I definitely want you guys to make sure you're expanding how you think about the projects.

SPEAKER_02: No, and that's a good call, right?

SPEAKER_02: I mean, that's where customer segmentation plays a role, which is really understanding

SPEAKER_02: what's motivating different types of customer segments.

SPEAKER_02: Some of them are very economically focused and are going to make that financial equation

SPEAKER_02: work for them.

SPEAKER_02: Some of them are passionate about sustainability, and it doesn't matter how much they're doing

SPEAKER_02: that.

SPEAKER_02: And we see that actually as you look across the different segments of participation in

SPEAKER_02: green energy or even solar shares, and I'll talk about that a little bit next, is you

SPEAKER_02: have people amongst the entire income spectrum participating in these additional cost programs.

SPEAKER_02: And that's an indication that different customer segments value different things and are looking

SPEAKER_02: for different things.

SPEAKER_02: So that's a good point.

SPEAKER_02: I'm happy to continue to brainstorm and even like saying, Hey, your solar is coming only

SPEAKER_08: from local, local power plants no more than 50 miles away or something.

SPEAKER_08: Like there's a lot of creative ways you can sell a product.

SPEAKER_08: Okay.

SPEAKER_02: Sure.

SPEAKER_02: No, you're good.

SPEAKER_02: As I said, we're slightly below goal for residential and commercial green energy programs

SPEAKER_02: in terms of numbers accounts, but we've actually increased versus 2024.

SPEAKER_02: We think that that's something to celebrate, particularly in this uncertain economic climate.

SPEAKER_02: But something definitely to celebrate in terms of numbers is that we did see a significant

SPEAKER_02: increase in our residential solar shares participation from 2024 to 2025.

SPEAKER_02: And this is very much kudos to the marketing team, the communications team, the trade show

SPEAKER_02: and events team and the program team working together with a, with a focused effort to

SPEAKER_02: really drive not only participation, but as I think Ed talked about last year, we developed

SPEAKER_02: the residential solar shares program to help support the customers that are less likely

SPEAKER_02: to be able to adopt solar.

SPEAKER_02: And so we're focused while it doesn't limit participation.

SPEAKER_02: Ideally we're hoping to see a good amount of participation in the low and moderate income

SPEAKER_02: segment.

SPEAKER_02: But what we've seen as through this concerted effort with the marketing communication and

SPEAKER_02: events team is that we've actually been very successful at that.

SPEAKER_02: So you'll see that our goal for this year was 1500 and we expect to exceed 1600 enrollments

SPEAKER_02: by the end of the year.

SPEAKER_02: We've looked at the percentages of the residential solar shares participants.

SPEAKER_02: 82% of them are in the non-EPR low and moderate income buckets and 12% are EPR and 6% are

SPEAKER_02: other.

SPEAKER_02: So that really gives you like, hey, we deliberately went to target the low and moderate income

SPEAKER_02: customers and we're getting the low and moderate income customers that are participating in

SPEAKER_02: solar shares.

SPEAKER_02: We've got our climate advocate program where customers contribute towards actually investing

SPEAKER_02: in projects.

SPEAKER_02: We're actually...

SPEAKER_02: We jump to the next slide.

SPEAKER_08: Oh, sorry.

SPEAKER_02: Am I in the next?

SPEAKER_02: Oh yes, we are on the next slide.

SPEAKER_02: Sorry about that.

SPEAKER_02: Our climate advocate program, we're actually seeking opportunities to use the funds also

SPEAKER_02: to include some projects based upon the nature-based solution.

SPEAKER_02: So the program team is working with Kathleen Aveh and the strategy team to look at project

SPEAKER_02: selection criteria as well as potential projects to fund there.

SPEAKER_02: And then as we look ahead, something that has been widely requested is to expand our

SPEAKER_02: virtual solar program.

SPEAKER_02: So we have virtual solar, which was created back in 2022.

SPEAKER_02: It was for affordable multifamily housing.

SPEAKER_02: We also had neighborhood solar shares, which was our title 24 multifamily solar option.

SPEAKER_02: But we did close neighborhood solar shares to new enrollments.

SPEAKER_02: You'll recall that was with some changes to title 24.

SPEAKER_02: And so we've created a new market rate version of virtual solar shares.

SPEAKER_02: Now we've rebranded it.

SPEAKER_02: So it's all going to be called multi-tenant solar.

SPEAKER_02: I have to remember that because I still want to call it virtual solar.

SPEAKER_02: But it will be multi-tenant solar and we'll have an affordable option and we'll have a

SPEAKER_02: market rate option.

SPEAKER_02: So we'll be launching this at the beginning of 2026.

SPEAKER_02: We're working through all the IT work right now, but it works out really well that even

SPEAKER_02: though we've closed neighborhood solar shares for new enrollments, we're still finishing

SPEAKER_02: up some projects in that space.

SPEAKER_02: And so that timing works out really well for when we believe projects will be coming to

SPEAKER_02: pass and looking for something like this to be available by the beginning of next year.

SPEAKER_02: And then on top of this, just like with virtual solar, there is the seed option, the supplier

SPEAKER_02: education economic development option that currently provides an additional 60 cents

SPEAKER_02: per watt, up to $500,000 per project.

SPEAKER_02: And we've actually awarded approximately $30,000 to date to seed qualified owners to

SPEAKER_02: date for their participation in virtual solar.

Unknown: With the question, I thought the residential solar shares program was closed.

SPEAKER_02: No, this is the residential solar shares program was closed was the one that I probably launched

SPEAKER_02: back in like 2007, which we closed when we went to TOD, I think.

SPEAKER_02: And then we re-launched a new residential solar shares program last year in response

SPEAKER_02: to interest in having an option for residential customers.

SPEAKER_02: And that's why, as I mentioned, we designed it to target low and moderate income customers,

SPEAKER_02: but didn't limit it to low and moderate income customers.

SPEAKER_02: So technically anyone can join, but have been focusing our marketing and recruitment in

SPEAKER_02: that space, knowing that that customer segment is less likely to adopt rooftop solar.

SPEAKER_06: So this program would allow me to buy into some solar shares to get solar energy.

SPEAKER_06: And it's not on my home, but it's someplace else.

SPEAKER_06: Right.

SPEAKER_06: Okay.

Unknown: Thank you.

Unknown: Yes.

SPEAKER_02: Okay.

SPEAKER_02: I've already talked about the renewable shares, which is the pilot with DGS to kind of track

SPEAKER_02: the hourly renewables.

SPEAKER_02: And then we continue to work on scoping the projects for the solar schools, community

SPEAKER_02: resiliency centers.

SPEAKER_02: We had a board panel back in February where we did an in-depth discussion on community

SPEAKER_02: solar.

SPEAKER_02: We're continuing to make progress.

SPEAKER_02: These projects are very complex because we're navigating not just solar and storage, but

SPEAKER_02: considering resiliency and not just the microgrid, but where this is located, what the implications

SPEAKER_02: are on the grid, and then also what are the stakeholders as we think about community resiliency,

SPEAKER_02: what would be an entity that would help support that?

SPEAKER_02: Is there support for that?

SPEAKER_02: How do we find that?

SPEAKER_02: So we're working through that as well as the design for the systems.

SPEAKER_02: The other thing we recognize is as tax credits are expiring, and then we've got tariffs,

SPEAKER_02: there's costs that are going up too.

SPEAKER_02: So those are all considerations that we need to watch as we're continuing to scope those

SPEAKER_02: programs.

SPEAKER_02: But as we think about looking ahead from exploring local solar options, because of the success

SPEAKER_02: of the enrollment of residential solar shares, we are going to start having the conversation

SPEAKER_02: of exploring additional solar to support the additional participation.

SPEAKER_02: So we'll be looking at that over the next year.

SPEAKER_02: And then the other thing I'll mention is when we did that board panel in February on community

SPEAKER_02: solar, there was someone from Rocky Mountain Institute, and he talked about the concept

SPEAKER_02: of community solar plus.

SPEAKER_02: And their concept was, hey, if you can find other revenue streams to help offset the investment

SPEAKER_02: costs associated with community solar, then is there a way to be able to encourage more

SPEAKER_02: of it?

SPEAKER_02: They had talked about additional revenue streams, including things like if you have canopy parking,

SPEAKER_02: like charging more cost for the parking.

SPEAKER_02: They had actually also said, I think in maybe some areas they've looked at, where car insurance

SPEAKER_02: for fleets might actually be lower if it's under a canopy solar.

SPEAKER_02: Again, we're working against the high costs of canopy solar and increasing costs that

SPEAKER_02: we're seeing across the board.

SPEAKER_02: But we actually did some work.

SPEAKER_02: So strategy staff worked with RMI following the February board meeting, did some, like

SPEAKER_02: created an Excel spreadsheet that creates a financial model to be able to help better

SPEAKER_02: prospect potential sites for location of solar, and then considering how if adding solar and

SPEAKER_02: storage might be beneficial for the grid, to be able to look at ways to better evaluate,

SPEAKER_02: like as we think about putting in potentially additional solar systems to either support

SPEAKER_02: community solar and things like that, obviously cost is a key thing that we have to look at.

SPEAKER_02: But are there ways to find or be able to take advantage of some of those potential alternative

SPEAKER_02: sources of revenue that can help buy down the cost and really help us find lower solar

SPEAKER_02: cost options or lower total investment cost options because other people are paying for

SPEAKER_02: some of the value that they get for whether it's covered parking or lower insurance rates

SPEAKER_02: and things like that.

SPEAKER_02: So just wanted to share that we've been working on that.

SPEAKER_02: Okay.

SPEAKER_02: So last slides for next slide for featuring some projects.

SPEAKER_02: This project on the left is a solar canopy that's shading benches that have charging

SPEAKER_02: stations for electronics at Street Soccer USA that was funded by the Climate Advocate

SPEAKER_02: Program.

SPEAKER_02: So as of the end of July, we have 759 customers on that program that contribute on average

SPEAKER_02: about $5 a month.

SPEAKER_02: The middle picture we've got Director Tamayo with the team getting the word out about

SPEAKER_02: our green pricing programs.

SPEAKER_02: So we're leveraging our community outreach events to drive additional enrollments into

SPEAKER_02: our program.

SPEAKER_02: So far we've had 35 customers over three events enrolled on site, 177 leads and 349 interest

SPEAKER_02: surveys that have been completed.

SPEAKER_02: And then on the left we've got Puja who is our Solar Shares Program Manager and Dijana

SPEAKER_02: who is our Greenergy Program Manager in front of CalPERS.

SPEAKER_02: And so wanted to recognize CalPERS, they are both currently a commercial Solar Shares

SPEAKER_02: customer as well as a Greenergy customer.

SPEAKER_02: And the notable thing is that last year we made a decision to discontinue the California

SPEAKER_02: renewable option because we saw PCC1 Rec prices go up by 4X between 2024 and 2025.

SPEAKER_02: And CalPERS was the only state agency that maintained their commitment to 100% California

SPEAKER_02: generated carbon free renewables in 2025.

SPEAKER_02: So definitely wanted to recognize them, appreciate their commitment to renewables as well as

SPEAKER_02: California renewables as part of our program.

SPEAKER_02: Next slide.

SPEAKER_02: So part of this presentation every year is also to share where we are in terms of both

SPEAKER_02: applications and installations for customer behind the meter solar.

SPEAKER_02: I know the board gets a periodic report on this as well.

SPEAKER_02: As you can see from this slide, overall year over year, total if you combine residential

SPEAKER_02: and commercial, we are still seeing an increase in applications and installations when you

SPEAKER_02: combine residential and commercial from 2024 to 2025 as you look at sort of comparable

SPEAKER_02: times, January through August of 2023.

SPEAKER_02: We do see, as you see, the differential between the lower color which is a blue and the upper

SPEAKER_02: color which is a green, that a large majority of these installations are new construction

SPEAKER_02: versus retrofit.

SPEAKER_02: You do see that the forecast for commercial is very, very high.

SPEAKER_02: The forecast for residential is slightly below 2024.

SPEAKER_02: We're watching this.

SPEAKER_02: The reality is with the expiration of the federal tax credit by the end of the year,

SPEAKER_02: we could very well see a run up that actually bumps our installations in 2025 above what

SPEAKER_02: we see for 2024 installation numbers.

SPEAKER_02: And then next slide.

Unknown: Oh, sorry.

SPEAKER_02: I do know the megawatts.

SPEAKER_02: So in 2024, we added approximately 35 megawatts of solar, 25 megawatts for residential, 10

SPEAKER_02: megawatts of commercial.

SPEAKER_02: This was from 6,344 applications and 6,035 installations.

SPEAKER_02: And in 2025 through August 23rd, those were total 2024, the whole year numbers.

SPEAKER_02: 2025, we've added 22.19 megawatts from 4,986 applications, 4,097 installations.

SPEAKER_02: Okay.

SPEAKER_07: Thank you.

Unknown: Mm-hmm.

SPEAKER_02: Okay.

SPEAKER_02: So in summary, we have made a lot of good progress in our programs.

SPEAKER_02: There is a lot to celebrate.

SPEAKER_02: However, the loss of external funding have a lot of policy changes both at the federal

SPEAKER_02: and state level.

SPEAKER_02: Tariff supply chain challenges is definitely making achieving the steeper curve more challenging.

SPEAKER_02: We are out of the flat sort of part of the curve and we're in that exponential growth

SPEAKER_02: of the curve as you look at our ZCP goals.

SPEAKER_02: I've talked about the work that we're doing with integrated distribution resources planning.

SPEAKER_02: That analysis is going to feed into our integrated resource planning starting in 2026.

SPEAKER_02: And that's really going to inform new goal trajectories for all of our DER portfolios.

SPEAKER_02: And you've heard me say it throughout this presentation, but it's really, really going

SPEAKER_02: to be important for us to focus our efforts.

SPEAKER_02: Like, we want to make sure we're supporting our partnership with our customers.

SPEAKER_02: Affordability is really, really important.

SPEAKER_02: And so, especially with this uncertain economic environment, we really need to be focused

SPEAKER_02: on the highest priority things for our, as we think about what we want to offer to our

SPEAKER_02: customers to be able to make the most progress across these portfolios.

SPEAKER_02: And then the last slide.

SPEAKER_02: So I will take questions, but the last slide, I wanted to share this.

SPEAKER_02: So next slide is after the strategy team and the delivery team combined, we did a team

SPEAKER_02: building event at the food literacy center.

SPEAKER_02: And so we pulled weeds.

SPEAKER_02: I think people were doing wheelbarrows of stuff.

SPEAKER_02: Someone had a chainsaw.

SPEAKER_02: But this is the combined strategy and delivery team, oops, sorry, with a few of the grants

SPEAKER_02: team participating as well.

SPEAKER_02: But the cool thing about the food literacy center, so not only did we do this team building

SPEAKER_02: event, which was great, and doing this all together, but for those of you that know Ryan

SPEAKER_02: Hammond, he gets super excited when he's talking about a building electrification project.

SPEAKER_02: And the food literacy center is very unique.

SPEAKER_02: So he gave us tours after we had done pulling weeds.

SPEAKER_02: He said, this is the first and only customer that we know of that incorporated a refrigerant

SPEAKER_02: to water heater, a water heat exchanger for a terminal unit for a variable refrigerant

SPEAKER_02: flow system.

SPEAKER_02: So basically the variable refrigerant flow system rejects valuable building heat indoors

SPEAKER_02: to preheat domestic hot water for the building instead of what traditionally they reject

SPEAKER_02: outdoors.

SPEAKER_02: So traditionally that heat goes outside and it heats the atmosphere, but instead they funnel

SPEAKER_02: the water into the heat into the water and into the water heater.

SPEAKER_02: And the people at the food literacy center, like when I turn on the water, like I'm going

SPEAKER_02: to burn my hand.

SPEAKER_02: Like it's that's, and it's that cool, right?

SPEAKER_02: So it in turn heats the domestic hot water through the act of cooling.

SPEAKER_02: So they only have to pay to cool.

SPEAKER_02: And that in parallel is also heating their hot water.

SPEAKER_02: So just really great opportunity for the team to do a team building event, but also really

SPEAKER_02: cool to be at a site that has done induction cooking and some really, really innovative

SPEAKER_02: heat pump and electrification work.

SPEAKER_02: So with that, I'm happy to take any additional questions.

Unknown: Right.

Unknown: Thank you for that.

SPEAKER_08: Are there any board member questions before we go?

SPEAKER_08: Okay.

SPEAKER_08: I have a number of public comments too, but we'll do the public comments first.

SPEAKER_08: Okay.

SPEAKER_08: Just a reminder, please speak in the microphone at the podium.

SPEAKER_08: State your name for the record and then please do not touch the microphone.

SPEAKER_08: They'll adjust the volume for down for you in the background as well.

SPEAKER_08: I have three speakers.

SPEAKER_08: Do you have any particular opinion or no?

SPEAKER_08: Okay.

SPEAKER_08: Then we'll start with David Wright.

Unknown: Hi, everybody.

Unknown: Good to see you.

SPEAKER_01: Thank you for that.

SPEAKER_01: Miss Wong.

SPEAKER_01: Kudos to SMUD and the team for increasing commercial electrification and multifamily

SPEAKER_01: projects, smart prospective urban solar siting.

SPEAKER_01: Those are all fantastic things.

SPEAKER_01: I also loved the point about encouraging financial help in getting over the customer's initial

SPEAKER_01: cost hump because as I've said before, all my experience with energy saving measures

SPEAKER_01: is you save money on them on the long term, but getting over that initial cost hump is

SPEAKER_01: what's difficult for almost everybody.

SPEAKER_01: So why not help customers get over that hump and then you can recoup your cost in helping

SPEAKER_01: them over time.

SPEAKER_01: I was puzzled by the lack of anything about vehicle to grid.

SPEAKER_01: I have talked about this before and it's always in the future.

SPEAKER_01: It's in the future.

SPEAKER_01: How long is this going to keep being in the future?

SPEAKER_01: There are vehicles out there right now that can power your home with an additional device.

SPEAKER_01: One that comes to mind is the Ford Lightning and there are others that I've heard of, but

SPEAKER_01: I don't know details on those.

SPEAKER_01: So why not get ahead of the curve here?

SPEAKER_01: Why not get something going that propels the market to do as you do?

SPEAKER_01: So that would be my suggestion.

SPEAKER_01: That's a huge way for SMUD to leverage people's investment in these vehicles to provide a

SPEAKER_01: service that SMUD needs.

SPEAKER_01: And finally, I have some ideas I'll probably send you guys on e-mail.

SPEAKER_01: I saw an article about solar between rails.

SPEAKER_01: So that was an interesting idea.

SPEAKER_01: Solar thermal hot water.

SPEAKER_01: That would obviate the need for these heat pump water heaters, very expensive water heaters.

SPEAKER_01: And it would also reduce electricity load.

SPEAKER_01: So maybe you'd get to 20, 30 faster or zero carbon faster.

SPEAKER_01: Finally, I would challenge the assumption that customers of EVs need level 2 charging.

SPEAKER_01: I have an EV and I do not have level 2 charging.

SPEAKER_01: I plug into a 220 outlet and I almost never need any additional charging.

SPEAKER_01: When I do, it's very convenient to go to the fast charger here at SMUD.

SPEAKER_01: So thank you for that.

Unknown: All right.

Unknown: Thank you for your comments.

SPEAKER_08: Next they have Rick Codina.

SPEAKER_07: Thank you, Rachel, and thank you, board members.

SPEAKER_07: I'd like to briefly summarize the two comments we submitted, Rosie, on behalf of the 350

SPEAKER_07: building electrification team.

SPEAKER_07: First we'd like to, like SMUD, explore expanding the lapsed commercial storage program.

SPEAKER_07: It began five years ago.

SPEAKER_07: It was an award winning program.

SPEAKER_07: Committed four megawatts of battery shares on the grid.

SPEAKER_07: Electrify America promptly bought all the available shares for their 12 charging stations.

SPEAKER_07: They're the only customer and the program is presently inactive.

Unknown: The program allowed customers with low load factors to buy shares in SMUD's storage offset

SPEAKER_07: peak demand charges.

SPEAKER_07: So we think the program would be a great assist to large restaurants who are considering building

SPEAKER_07: cooking electrification.

SPEAKER_07: They would incur high demand during peak dinner hours and so after installing cooking equipment

SPEAKER_07: so they could benefit from this program.

SPEAKER_07: So we think it should be looked at again.

SPEAKER_07: Secondly we commend SMUD for continuing what are probably the best utility electrification

SPEAKER_07: rebates in the state.

SPEAKER_07: But we do have to point out that the goals that are used continue to not really show

SPEAKER_07: the results in terms of the actual turnover of units because of burnout or compare them

SPEAKER_07: in the context of the remaining stock.

SPEAKER_07: So as we have documented, the heat pump conversions, while they are impressive, they fall short

SPEAKER_07: of capturing the actual 20,000 to 24,000 gas appliances that burn out annually.

SPEAKER_07: Most of these are now being replaced with gas units who will remain in stock producing

SPEAKER_07: unnecessary greenhouse gases for the next 15 to 20 years.

SPEAKER_07: It's not meant as a criticism.

SPEAKER_07: SMUD is doing a great job but it is a huge lost opportunity and we see the need to step

SPEAKER_07: up beyond rebate offerings.

SPEAKER_07: You guys are working on a lot of things.

SPEAKER_07: Here's a few ideas some of you are already doing.

SPEAKER_07: We would like, for example, to have SMUD join us in lobbying to create ordinances and regulations

SPEAKER_07: that would mandate heat pump replacements on burnout at the city, county or most effectively

SPEAKER_07: at the Air Quality Management Board.

SPEAKER_07: Low cost financing, as has been mentioned here, there's a good program being promoted

SPEAKER_07: by the City of Elk Grove for pay as you save.

SPEAKER_07: We also are supporting more convenient electronic permitting for electrification switch outs

SPEAKER_07: with the City of Sacramento and they have expressed some interest in possibly going

SPEAKER_07: that route to make it much easier for contractors to go through the permitting process for heat

SPEAKER_07: pump conversions.

SPEAKER_07: Bulk purchases, I think you are looking at that for recommended equipment to sell with

SPEAKER_07: less markup.

SPEAKER_07: We don't have all the answers but we hope that SMUD will continue its leadership on

SPEAKER_07: electrification by exploring new effective options in the future besides rebates.

SPEAKER_07: Thank you.

SPEAKER_08: Thank you, Rick.

SPEAKER_08: The last card I have is John Weber.

SPEAKER_00: Good evening, Board.

Unknown: I want to give a big shout out to Rachel and all her staff for putting this presentation

SPEAKER_00: together.

SPEAKER_00: Also I attended a workshop earlier this year about zero carbon and Josh Langdon, Abadiah

SPEAKER_00: Bartholomew and Brian Swan were involved with that and they did a great job as well.

SPEAKER_00: Josh suggested I watch the April 16th meeting, which I did.

SPEAKER_00: It sounded like SMUD isn't a big cause of air pollution in our area.

SPEAKER_00: I found the Board discussion very insightful.

SPEAKER_00: It sounds like vehicles are a major source of pollution, which SMUD addresses by promoting

SPEAKER_00: EVs.

SPEAKER_00: In the winter a major source is wood burning.

SPEAKER_00: SMUD addresses this by promoting heat pumps.

SPEAKER_00: They are cleaner, cheaper to fuel and more convenient than wood.

SPEAKER_00: Great work, everyone.

SPEAKER_00: That 10 shows we have about 70,000 EVs now.

SPEAKER_00: If each one of them had a 70 kilowatt hour battery, that would be 4.9 gigawatt hours

SPEAKER_00: of storage, if I did my math correctly.

SPEAKER_00: Bi-directional chargers are now available to integrate those electrons into the grid

SPEAKER_00: when needed.

SPEAKER_00: This tool could make home battery storage go the way of eight track tape players.

SPEAKER_00: Please consider shifting some incentive money from home storage to bi-directional charging.

SPEAKER_00: There are multiple units available right now and there will be more next year.

SPEAKER_00: By the middle of next year I think Enphase will have theirs done, another California

SPEAKER_00: company.

SPEAKER_00: I thought it was great to hear that SMUD is working with RMI because they're a leader

SPEAKER_00: in this field.

SPEAKER_00: I was thinking about Director Fishman talking about his old hot water heater.

SPEAKER_00: This wasn't part of my prepared comments.

SPEAKER_00: Maybe SMUD needs a cash for clunkers program for these old hot water heaters.

SPEAKER_00: Just something to think about, give people the extra push to replace these units before

SPEAKER_00: they go back.

SPEAKER_04: Well, that's kind of where I was going.

SPEAKER_00: Rachel I will give the board member credit for that suggestion and you all have a great

SPEAKER_00: evening.

SPEAKER_00: Thanks for all the work you're doing.

SPEAKER_08: Thank you for that.

SPEAKER_08: Thank you all for coming and joining us tonight.

SPEAKER_08: I know we typically hear you virtually so it's good to see your faces.

SPEAKER_08: Rachel, I would be curious if you might say just a couple of words about some of our VGI

SPEAKER_08: and managed charging.

SPEAKER_08: We talked about managing when it's more about controlling when the vehicle charges versus

SPEAKER_08: a V2X kind of setup.

SPEAKER_02: Just to speak to the comments with regards to V2G, we do see that as an opportunity as

SPEAKER_02: you look at our zero carbon plan.

SPEAKER_02: Actually in the load flexibility portfolio we did make some assumptions of how much V

SPEAKER_02: to G or V to X we would have in terms of capacity.

SPEAKER_02: My report out tonight was primarily on our operational customer programs and looking

SPEAKER_02: ahead of what will be coming into those operational programs.

SPEAKER_02: James Frazier is actually coming in October I think next month to talk about SD10 and

SPEAKER_02: maybe SD19 in which from an R&D standpoint which is SD10 is innovation, I think he will

SPEAKER_02: be covering more details on what we're doing in the V to G space which is the organization

SPEAKER_02: that's been leading the work there.

SPEAKER_02: Once it's in that operational program phase or ready to get to that operational program

SPEAKER_02: phase that's actually when it switches to my organization.

SPEAKER_02: Not that SMUD is not doing stuff in that space, it's more just the scope of what we cover

SPEAKER_02: today versus other presentations.

SPEAKER_08: Any commentary about appliance turnover rates?

SPEAKER_02: Definitely appreciate the sentiment and thus why we've been working on things like turn

SPEAKER_02: key hot water heating, recognizing how do you start making more progress and very much

SPEAKER_02: appreciate that you acknowledge that we have been doing really well with regards to as

SPEAKER_02: you look at the market share.

SPEAKER_02: The other thing that we need to consider is even to this day a lot of the HVAC replacements

SPEAKER_02: are still not permitted, those numbers are pretty dismal.

SPEAKER_02: So it's very hard for us to understand or to know and kind of track that information.

SPEAKER_02: If you don't even have systems that are being permitted, let alone considerations for that

SPEAKER_02: transition from gas to electric, I think those are some of those things too of how do we

SPEAKER_02: work with Oracle jurisdictions or how do we work relative to those things that we can

SPEAKER_02: try to address together.

SPEAKER_02: So happy to talk offline with regards to that.

SPEAKER_02: It's definitely something that we look to if you look at how SMUD is doing relative

SPEAKER_02: to the market share.

SPEAKER_02: Like you said, around 30%, which is pretty substantial, especially relative to knowing

SPEAKER_02: what percentage of HVAC change outs are permitted.

SPEAKER_02: But it doesn't mean that we stop, right?

SPEAKER_02: It doesn't mean that we don't press forward to try to do more.

Unknown: Okay.

Unknown: Thank you for that.

SPEAKER_08: I think Director Brew-Thompson, do you still have a comment?

SPEAKER_05: Thank you.

SPEAKER_05: It's a lot of programs.

SPEAKER_05: I know that just to emphasize to the 12 listeners is there's several different components to

SPEAKER_05: how we electrify and this is just one large one.

SPEAKER_05: So I just wanted to say thank you and I will echo, thank you Mr. Wright.

SPEAKER_05: I've had two electric cars on and off for 10 years and we actually didn't even have

SPEAKER_05: a 220.

SPEAKER_05: We charge two, one on one 10, if you can imagine that.

SPEAKER_05: So I really love seeing those programs, especially in high density, multifamily homes.

SPEAKER_05: I know that's what I hear from a lot of people.

SPEAKER_05: And that's how Europe actually does a lot of their just even garages, apartments.

SPEAKER_05: It's a bring your own model.

SPEAKER_05: And so I'm excited to see more of that because most people don't even actually need a 220

SPEAKER_05: for a lot of the time.

SPEAKER_05: Just a option for one 10 is great.

SPEAKER_05: I always say if I never see another fast charger being built in our district, it would be too

SPEAKER_05: soon because they're just really expensive for the amount of money.

SPEAKER_05: But I do appreciate just the variety of projects that you all try to balance with the varying

SPEAKER_05: needs of our constituents.

SPEAKER_05: So I am looking forward to diving in a little bit more both for innovation and for the EV

SPEAKER_05: conversation in November.

SPEAKER_05: But I just want to say, thank you.

SPEAKER_05: It's a lot of work to be able to balance our commercial and residential needs and all the

SPEAKER_05: things everybody wants to do with a finite amount of money now with the uncertainty with

SPEAKER_05: the federal government and funding.

SPEAKER_05: So it'll be harder to do more programs, but I know you all will stretch every dollar possible

SPEAKER_05: to get the bang for a buck.

SPEAKER_05: Thank you.

SPEAKER_02: Thank you.

SPEAKER_02: And actually, I'm a big proponent of 110 as well.

SPEAKER_02: I had an EV for six years before we had level two.

SPEAKER_02: The only reason why we put in level two, I tell everybody, is because we put in patio

SPEAKER_02: heating, electric patio heating.

SPEAKER_02: So we were kind of like, oh, we'll just do it while we're doing that.

SPEAKER_02: But we were on level one for six years.

Unknown: So.

Unknown: Director Herbert.

SPEAKER_06: So I, too, want to thank you and your team for this update on the zero carbon plan.

SPEAKER_06: I can see we are making progress.

SPEAKER_06: I like how thoughtful and strategic you all are, although that is your job.

SPEAKER_06: But still, it's showing up.

SPEAKER_06: And I continue to hear good things from our customers.

SPEAKER_06: They're pleased with the rebates that we're offering them to take this step.

SPEAKER_06: And without them, folks would not be doing this.

SPEAKER_06: So I think your team is doing a good job.

Unknown: Great.

Unknown: Thank you.

Unknown: Any other comments?

Unknown: I would just say, as we look at some of these goals, like we've been in the sort of the

SPEAKER_08: easy years.

SPEAKER_08: Because they've done a lot of work and staffs work hard to accomplish it.

SPEAKER_08: And there's still thousands.

SPEAKER_08: But we see that exponential increase into 2030.

SPEAKER_08: And it certainly makes me nervous.

SPEAKER_08: I think it's still probably too early.

SPEAKER_08: But I think maybe some of that IRP work will help us uncover some of the repercussions

SPEAKER_08: of all the changes that are going on in the electrification space.

SPEAKER_08: And make sure that those goals are still going to be somewhat realistic.

SPEAKER_08: We want to keep charging hard.

SPEAKER_08: But I also don't want us to end up in a few years building nowhere close and getting all

SPEAKER_08: this criticizing, right?

SPEAKER_08: There's so many headwinds right now that we're trying to navigate.

SPEAKER_08: It's something that's sort of in the back of my mind that we'll want to continue to think

SPEAKER_08: about as things keep moving forward.

Unknown: Yeah.

Unknown: Good.

Unknown: Thank you.

SPEAKER_08: That's all I have.

SPEAKER_08: I have another.

SPEAKER_08: I have anything else for this agenda item?

SPEAKER_08: I have one public comment.

SPEAKER_08: Mr. Wright, do you have a card for items not on the agenda?

Unknown: Okay.

SPEAKER_08: Go ahead and come up.

Unknown: Hi.

SPEAKER_01: David Wright.

SPEAKER_01: This is about Coyote Creek solar.

SPEAKER_01: And I'm speaking here for Sacramento 350 as well as myself.

SPEAKER_01: This is not a good project.

SPEAKER_01: And I think that I've been telling you guys that for two years or more.

SPEAKER_01: And there is going to be significant opposition continuing to the project.

SPEAKER_01: You have the opportunity to save everybody a lot of time, a lot of effort, a lot of money

Unknown: by just saying we're walking away from this project right now.

SPEAKER_01: You can do that.

SPEAKER_01: The project is out of compliance with the contract.

SPEAKER_01: They're probably going to come back to you for more money.

SPEAKER_01: So I would say just say no.

SPEAKER_01: It's a terrible place, terrible place for this.

SPEAKER_01: And you were I hear you were deceived about that when they came in.

SPEAKER_01: So you have every justification and duty to walk away from that project.

SPEAKER_01: I want the solar, but I want it somewhere else.

SPEAKER_01: Thank you.

Unknown: Okay.

SPEAKER_01: Thank you for your comments.

Unknown: Is there any summary of community direction?

Unknown: I don't think we created any work.

Unknown: Oh, yeah.

SPEAKER_03: I don't.

SPEAKER_03: There's no other public comment.

SPEAKER_03: And there's no summary of community direction.

SPEAKER_03: Okay.

SPEAKER_08: A crucial comment.

SPEAKER_08: Thank you.

SPEAKER_08: I'll just say thank you, Rachel.

SPEAKER_08: And thank you to the staff supporting this item.

SPEAKER_08: And we will be adjourned.