Policy Oct 07 2026

Unknown: CSgenerpur Corona

Unknown: responsibility of minorities note

Unknown: Garcia

Unknown: Thank you.

Unknown: Thank you.

Unknown: Thank you.

SPEAKER_03: This is the meeting of the public attending in person who wish to speak at this meeting.

SPEAKER_03: I would like to present the meeting as a discussion of the monitoring report for strategic direction SD6 safety leadership.

SPEAKER_03: Good evening.

Unknown: My name is Emily Bikini and I'm the director of safety environmental and real estate services.

SPEAKER_01: I'm happy to share tonight with you the monitoring report for strategic direction 6 safety leadership for the first two quarters of 2026.

Unknown: This is our SD6 language.

SPEAKER_01: It was last updated in April.

SPEAKER_01: And at that time we updated the timeline and the goal for our workplace safety objective.

Unknown: We extended the timeline out to 2030 and set the goal to zero severe safety incidents as measured by OSHA's days away restricted time or DART classification.

SPEAKER_01: We also made a few other editorial changes to the language at that time.

Unknown: As I just mentioned, our first SD6 objective is to reduce SMUD's injury incidents that result in days away or restricted time to zero by the end of 2030.

Unknown: To help us meet that goal we set internal targets that reduce year over year and our internal target for 2026 is 11.

SPEAKER_01: In the first two quarters we had a total of nine OSHA recordable incidents that included five DARTs.

Unknown: And our DART rate for the year is .44 which is compared to an industry standard of 1.2.

Unknown: That number captures the number of DART incidents we have as a function of the total number of hours worked.

SPEAKER_01: The second objective of SD6 is to ensure that our employees receive quality care so that they can return to work if they do happen to be injured.

SPEAKER_01: Our safety team partners with the integrated disability management team to ensure that that quality care is provided should an injury occur.

Unknown: We continue to see a reduction in our workers' compensation costs over the past five years as presented on this table.

SPEAKER_01: While the number of claims and injury frequency have increased slightly, our rates are cost for workers' compensation per $100 of payroll has decreased.

Unknown: This points to a variety of factors including that the injuries our employees experience are reducing in severity and that they are able to return to work sooner after an incident.

SPEAKER_01: The data on this table was received last September, September 2025 for the period that covered July 2024 through June 2025.

SPEAKER_01: And I'll be able to share the results of the report we received a few weeks ago in my next presentation in February.

Unknown: Another objective of SD6 is our contractor safety.

SPEAKER_01: We want to support those contractors to reduce and eliminate potential hazards when they're conducting high risk work.

SPEAKER_01: We continue to use the international supplier net world to evaluate safety records and performance of high risk contractors.

SPEAKER_01: This evaluation focuses on contractor fatality history, OSHA citation history, DART and total recordable incident rates, safety culture questions, and safety program review.

SPEAKER_01: We currently have 189 contractors in the ISN system.

Unknown: We conduct mini site visits, safety audits for our high risk contractors to validate their performance on our job sites.

SPEAKER_01: Year to date we've conducted 324 visits, which puts us on track to exceed our goal of 500 visits for 2026.

Unknown: These visits focus on contractors that work with our power generation, line, substation, facilities, vegetation management, and environmental services team.

SPEAKER_01: Again, working on projects where high risk work is performed, including high voltage work and working at heights.

Unknown: The last two SD6 objectives are in support of public and community safety.

SPEAKER_01: We focus on tracking public incidents and injuries that result from our operations and facilities and seek to find measures to protect the public from such incidents.

SPEAKER_01: Our public safety team has been able to attend many safety events in the community.

Unknown: And we had a great event earlier this year where we teamed with the Sacramento City Fire Department and they were able to tour some of our underground, I'm sorry, downtown network vaults.

Unknown: And then we also prepare materials for first responders that's available on our SMUDsafety.com website, including information on how to respond to fires caused by lithium ion batteries.

Unknown: We do track our public and community incidents, including asset collisions, electrical contacts, dig-ins and injuries that result from those incidents.

SPEAKER_01: In the first two quarters, there were 124 vehicle versus asset incidents where a member of the public struck one of our facilities.

SPEAKER_01: Last time I was here, additional information was requested around those incidents.

SPEAKER_01: About 25% of our incidents are hit and run.

SPEAKER_01: We don't have any data on them.

Unknown: Of the remaining 75%, the two largest categories are impacted driving or driving under the influence, I'm sorry, impaired driving or driving under the influence, and speed or loss of vehicle control.

SPEAKER_01: Twice as many of the drivers are male and about a quarter of them are under 30.

Unknown: We had six electrical contacts reported and four injuries resulting from those contacts.

SPEAKER_01: And there were 34 dig-in incidents with no reported injuries.

SPEAKER_01: In response to those dig-ins, we do send out notifications to the contractors or customers responsible for those incidents to help provide increased awareness and education and prevent those events from reoccurring in the future.

SPEAKER_01: And then my last slide here is our safety for life slide.

SPEAKER_01: A lot of programs and a lot of the effort the teams undertake.

SPEAKER_01: I'm not going to read through all of these items here, but I do want to focus on two of them, one being our vehicle safety program.

SPEAKER_01: This year we started off the year with six preventable vehicle accidents or PVAs, which is a higher rate than what we typically see.

Unknown: A PVA committee was formed coming out of our joint labor and management meetings to review the data to identify trends and share that information back out with teams during safety meetings or in safety alerts.

Unknown: And through these efforts we were able to see a reduction in PVAs that has continued through the rest of the year.

Unknown: The second item I want to speak to are supervisor-employee interactions.

SPEAKER_01: This is another metric that we track internally.

SPEAKER_01: We know that interactions employees have with their leaders are the most impactful, and so it's important that our leaders have targeted conversations.

SPEAKER_01: They're able to address topics like ergonomics, slip, trip, and fall hazards, personal protective equipment, and situational awareness risks.

Unknown: They also have eyes-on work conversations that helps our leaders identify hazards early, reinforce safe behaviors, and prevent incidents.

Unknown: The interactions can also include safety for life topics like ladder use and having your vehicle prepared for the changing weather.

Unknown: Through proactive measures and meaningful conversations, SMUD continues to build a strong safety culture across our organization.

SPEAKER_01: And with that, I'd like to request that the board accept the SD6 monitoring report for the first half of 2026.

Unknown: Any questions?

Unknown: Any questions or comments?

SPEAKER_03: My only comment, the question, commentary request that I ask every year is on the SCORCH program.

SPEAKER_03: Yes.

SPEAKER_03: And how's that gone in the last year?

SPEAKER_01: The SCORCH program continues to be very successful.

SPEAKER_01: In the first half of the year, we had over 3,000 observations completed, both with our field forces and in our office program.

Unknown: I was wondering if we do anything to enhance safety for our customers that have like med rate, where they have machines that are particularly important for their wellbeing,

SPEAKER_05: making sure that if there's going to be either planned or unplanned shut off, that we know who's on that circuit and we go an extra mile to really ensure their safety or enhance their safety.

Unknown: That's not something that the safety team participates in, but we could get back to you to see how customers may support that effort.

Unknown: Thank you.

SPEAKER_03: My only other comment is that the numbers seem good. The number for 2025 was 12.

SPEAKER_03: So it's still trending in the right direction. Zero is certainly an aggressive goal.

SPEAKER_03: But I'm glad to see that. And then where the dollars hit the road is the actual rates we pay and having those be low for workers comp. So it's a good report.

Unknown: Great. Thank you.

SPEAKER_03: Is there any public comments?

Unknown: I don't see any hands now.

Unknown: Thank you. They all could be that.

SPEAKER_03: Okay. So item number two is to discuss the monitoring report for strategic direction SD10, which is our innovation report.

SPEAKER_03: Thank you for the opportunity to present and speak to SD10 tonight. My name is James Frazier. I'm our director of research and development grants and partnerships.

Unknown: As I jump into the conversation, I want to start with the language around SD10 and what we're targeting with innovation.

SPEAKER_02: I think it's important to call out here that SD10 does highlight the importance of research and development and the investment in that for moving us in the direction that we're trying to go and obtaining those long-term goals and the importance of that investment to our community.

SPEAKER_02: But before I jump in and start talking about the project highlights and the statistics for this particular SD, I think it's important to highlight that while research and development is called out here, innovation is really cross-cutting across the organization.

SPEAKER_02: And it's built into the culture. And we see it in all different areas. I always appreciate the safety presentation that comes prior to this presentation because you can pick out those different areas of innovation where we're building that in, where we're thinking about that for the future.

SPEAKER_02: And the first three years ago, we first built our lithium battery at the hedge facility. That battery has continued to be a test bed for how we incorporate lithium battery energy storage into our systems.

SPEAKER_02: And seeing a bullet on the safety presentation, talking about how we're thinking about the fire preparedness and the emergency response strategies for those lithium batteries, it starts with that research and development that we did, that innovation.

SPEAKER_02: that innovation and it becomes an operationalized solution.

SPEAKER_02: None of the things that we talk about in innovation

SPEAKER_02: happen without the rest of the organization

SPEAKER_02: leaning into this conversation.

SPEAKER_02: And that culture is embedded through all of the topics

SPEAKER_02: and projects that I have the opportunity

SPEAKER_02: to talk about this evening.

SPEAKER_02: Thinking about that from an overall project trend,

SPEAKER_02: we look at where we've been over the last couple years

SPEAKER_02: and this is a trend that I'm really excited about.

SPEAKER_02: Previously, as we came out of COVID,

SPEAKER_02: we saw a declining number of projects

SPEAKER_02: coming from our research and development areas.

SPEAKER_02: A lot of that was driven by those changes.

SPEAKER_02: But when we look at the trends that we've established

SPEAKER_02: over the last three years,

SPEAKER_02: we see a growing number of projects

SPEAKER_02: and an increased focus on the importance of innovation

SPEAKER_02: and how we're incorporating that across the organization.

SPEAKER_02: Projecting that forward, we can also see

SPEAKER_02: that the budget has increased in terms of the spend

SPEAKER_02: that we're investing into this space.

SPEAKER_02: In 25, the reporting period there through 2026.

SPEAKER_02: An important highlight that I like to call out

SPEAKER_02: when we look at the amount of money that we're spending

SPEAKER_02: and the difference between those two years

SPEAKER_02: is that while we are investing more money

SPEAKER_02: into research and development,

SPEAKER_02: while innovation is growing in terms of the priority there,

SPEAKER_02: the actual increase in the dollars between 25 and 26

SPEAKER_02: was funded through grants and external funding

SPEAKER_02: that we're able to secure to advance these initiatives.

SPEAKER_02: So the things that we're doing in our leadership position

SPEAKER_02: in this space is really giving us the opportunity

SPEAKER_02: to bring in external funding,

SPEAKER_02: which we'll be able to talk about momentarily

SPEAKER_02: when I get to SD19, my next presentation.

SPEAKER_02: But that external funding is allowing us

SPEAKER_02: to continue to reach further,

SPEAKER_02: do more with the dollars that we have

SPEAKER_02: and accelerate the things that are necessary for us

SPEAKER_02: to achieve our long-term goals.

SPEAKER_02: On the right side of the chart here,

SPEAKER_02: we have a breakdown of what our portfolio looks like.

SPEAKER_02: We heard earlier this year about the importance

SPEAKER_02: of transportation electrification

SPEAKER_02: on our overall decarbonization journey.

SPEAKER_02: And for me, that's reflected in our research portfolio

SPEAKER_02: and something that I'm excited about

SPEAKER_02: that 38% of that portfolio

SPEAKER_02: is focused on transportation electrification,

SPEAKER_02: managed EV charging, charging solutions,

SPEAKER_02: vehicle-to-grid technologies

SPEAKER_02: that we're looking forward to in the future.

SPEAKER_02: We also have a strong balance of research

SPEAKER_02: across other topic areas.

SPEAKER_02: Core research in the upper right-hand corner here

SPEAKER_02: incorporates a lot of our longer-range research,

SPEAKER_02: the work that we do with EPRI, external labs,

SPEAKER_02: and other advisory groups.

SPEAKER_02: It also represents our investment into the industry

SPEAKER_02: and where we participate in events

SPEAKER_02: or working groups with other utilities

SPEAKER_02: and bring that knowledge back to SMUD

SPEAKER_02: and making sure that we're benefiting

SPEAKER_02: from the work that others are doing as well.

SPEAKER_02: So we have a very nice balanced portfolio.

SPEAKER_02: Building electrification,

SPEAKER_02: being the smallest slice of that pie,

SPEAKER_02: significant number of those technologies

SPEAKER_02: are more established.

SPEAKER_02: And so where we see the fast-moving innovation,

SPEAKER_02: things like electrification, transportation,

SPEAKER_02: that's where we see the lion's share

SPEAKER_02: of our investment going.

SPEAKER_02: Jumping down, I do wanna take a little bit of time

SPEAKER_02: to talk about some of the portfolio highlights

SPEAKER_02: for the reporting year.

SPEAKER_02: This isn't an overall summary of all the work that was done

SPEAKER_02: and it's not a deep dive into these individual projects,

SPEAKER_02: but it is some of the work that we're very, very proud of

SPEAKER_02: having accomplished in this period.

SPEAKER_02: Starting with the EV ecosystem,

SPEAKER_02: we have a number of new fast-charging stations

SPEAKER_02: that are going in place.

SPEAKER_02: Our public charger network is set to go live in 2027.

SPEAKER_02: That's an initiative that started with requirements

SPEAKER_02: and framing from our research and development team

SPEAKER_02: and now proudly has been handed off

SPEAKER_02: to the operational side of the business

SPEAKER_02: to create that as a fully fledged solution.

SPEAKER_02: And also here in the bottom left-hand corner,

SPEAKER_02: you see the charging station

SPEAKER_02: that's being funded by the FAST grant.

SPEAKER_02: That's actually coming online here at Sac State

SPEAKER_02: near the end of this year.

SPEAKER_02: Maybe early next year, but we're hoping end of this year.

SPEAKER_02: And then as happy and optimistic as that photo is

SPEAKER_02: and as excited as we are to expand that access,

SPEAKER_02: we also have a new section of research

SPEAKER_02: that we're launching into this space

SPEAKER_02: and that's around vandalism

SPEAKER_02: and damage mitigation strategies.

SPEAKER_02: The pictures that you see in the middle here

SPEAKER_02: are actually from a charge station here in Sacramento

SPEAKER_02: and they're significantly less uplifting.

SPEAKER_02: You see a damaged charger handle, you see a shattered screen.

SPEAKER_02: So we're starting research work around

SPEAKER_02: the maintenance strategies, the uptime strategies,

SPEAKER_02: repair strategies and the work that companies are doing

SPEAKER_02: to make these systems more robust

SPEAKER_02: against vandalism and damage.

SPEAKER_02: It's going to be an important investment

SPEAKER_02: as we see the proliferation of technologies.

SPEAKER_02: And so as we're operationalizing the deployment of chargers,

SPEAKER_02: when we think about innovation, technology,

SPEAKER_02: research and development,

SPEAKER_02: we're constantly looking at what comes next

SPEAKER_02: and thinking about what that vandalism strategy looks like

SPEAKER_02: is part of that conversation.

SPEAKER_02: On the right side here is our overall

SPEAKER_02: vehicle to grid solutions.

SPEAKER_02: This is a large part of our portfolio.

SPEAKER_02: Originally I had a picture on this slide

SPEAKER_02: that was focused, that just had a car charging.

SPEAKER_02: It's hard to see the fact that the charger

SPEAKER_02: is bi-directional, that energy is moving both ways

SPEAKER_02: to and from the grid through an image.

SPEAKER_02: I replaced it with a timeline

SPEAKER_02: because it feels like it tells the story

SPEAKER_02: just a little bit better.

SPEAKER_02: But also that image that's just a normal looking car

SPEAKER_02: and a normal looking charger

SPEAKER_02: is why that technology is so exciting.

SPEAKER_02: At the early stages of the technology,

SPEAKER_02: we're seeing it evolve.

SPEAKER_02: We're in this research and testing and modeling phase.

SPEAKER_02: We see 26 into 27 transitioning into more validation

SPEAKER_02: and actual demonstration of these technologies,

SPEAKER_02: 28 representing when we can see technology transfer

SPEAKER_02: and starting to see larger scale programs

SPEAKER_02: and the opportunity for large scale contributions

SPEAKER_02: of this technology to the grid.

SPEAKER_04: James, I want to ask a question

SPEAKER_04: about the vandalism prevention.

SPEAKER_04: You don't ever hear about people,

SPEAKER_04: maybe not ever, but rarely people vandalizing gas pumps.

SPEAKER_04: And it's because they're at a gas station.

SPEAKER_04: There's people, or a mini market or whatever.

SPEAKER_04: And so many EV chargers are out at the back end

SPEAKER_04: of a parking lot somewhere or kind of removed.

SPEAKER_04: And I'm wondering, are we looking at where we place them

SPEAKER_04: as part of that strategy and trying to put them

SPEAKER_04: in spaces that are a little bit more active?

Unknown: So that does become part of that strategy

SPEAKER_02: and the modeling and adoption also.

SPEAKER_02: The other thing that we keep in mind,

SPEAKER_02: and as I'm having these conversations,

SPEAKER_02: these are very right now conversations

SPEAKER_02: we're sure outside the reporting period.

SPEAKER_02: So don't look to read this particular paragraph

SPEAKER_02: in the actual report.

SPEAKER_02: But one of the challenges is that people cut the cords

SPEAKER_02: because they're looking to sell the copper in the cord.

SPEAKER_02: And so we see technology and innovation

SPEAKER_02: in companies that are investing in things like

SPEAKER_02: ink-filled cables inside those cords

SPEAKER_02: where the ink will dye the copper in the event

SPEAKER_02: that it's cut or vandalized.

SPEAKER_02: And then working with the local salvage yards

SPEAKER_02: or the metal trade and facilities

SPEAKER_02: to not accept copper that's traded in

SPEAKER_02: that has the purple dye in this case.

SPEAKER_02: And that's a really innovative solution

SPEAKER_02: because if you cut off the financial means

SPEAKER_02: or incentive for committing the vandalism

SPEAKER_02: or destroying those systems,

SPEAKER_02: you start to get in front of some of that.

SPEAKER_02: And so that's where we're looking at the things

SPEAKER_02: that we can control, the things that we can influence,

SPEAKER_02: and making sure that even if it's not something

SPEAKER_02: that SMUD does directly,

SPEAKER_02: that we can be that trusted energy advisor

SPEAKER_02: to those EV charging companies

SPEAKER_02: that are deploying this technology into our communities.

SPEAKER_02: And we can help them make that decision

SPEAKER_02: of this cord is important because this is the type

SPEAKER_02: of anti-vandalism investment that you need to make.

SPEAKER_02: The reliability of these EV chargers is critical

SPEAKER_02: for people to continue to adopt electric vehicles

SPEAKER_02: at the cadence that we're hoping for

SPEAKER_02: with respect to our community impact and air quality.

SPEAKER_02: And especially when we look at the price of gases today.

SPEAKER_02: So this becomes a very, very important element

SPEAKER_02: for long-term success and load growth in this space.

SPEAKER_04: As we're looking to expand our sort of SMUD branded

SPEAKER_04: EV charging, I mean, what are our criteria

SPEAKER_04: for where we decide to put them?

Unknown: So that is a very balanced conversation.

SPEAKER_02: So on our side.

SPEAKER_02: And maybe that's a question for our EV team.

SPEAKER_02: I can answer it very quickly,

SPEAKER_02: and then I will defer to the larger experts in the space.

SPEAKER_02: We target a lot of those harder to reach areas

SPEAKER_02: where ride and drive might have a high level of value.

SPEAKER_02: Sacramento State did not have a charging station

SPEAKER_02: of this magnitude of reliability.

SPEAKER_02: And that represents a high transit hub.

SPEAKER_02: And so we were able to step in and fill that opportunity.

SPEAKER_02: Sac State is also a phenomenal partner

SPEAKER_02: in working with us to bring that online.

SPEAKER_02: Site selection can be very difficult.

SPEAKER_02: And having a partner that performs at that level

SPEAKER_02: and has that level of commitment to the vision is important.

SPEAKER_04: Thank you.

SPEAKER_02: Jumping forward, talk a little bit

SPEAKER_02: about our distributed energy resources.

SPEAKER_02: In the last year in this reporting period,

SPEAKER_02: we saw an interesting piece of technology come forward.

SPEAKER_02: A meter collar that can sit underneath

SPEAKER_02: the electrical meter that actually allows solar

SPEAKER_02: to connect more quickly, to be installed at a lower cost

SPEAKER_02: and reduces the barrier to access

SPEAKER_02: for renewable energy to our customers.

SPEAKER_02: This isn't the type of technology

SPEAKER_02: that had been readily available from utilities

SPEAKER_02: or the industry until very, very recently.

SPEAKER_02: We were one of the first utilities

SPEAKER_02: to ever pilot this technology.

SPEAKER_02: And we did that as part of our transition

SPEAKER_02: to our solar and storage rate.

SPEAKER_02: And it was a very exciting piece of technology.

SPEAKER_02: Based on that pilot, the industry has largely started

SPEAKER_02: to adopt this approach because it does genuinely

SPEAKER_02: save our customers money

SPEAKER_02: when they're adopting renewable energy.

SPEAKER_02: And so in anticipation of more of these technologies

SPEAKER_02: becoming available and being asked to interconnect these,

SPEAKER_02: we want to make sure that we're prioritizing safety

SPEAKER_02: along with that affordability side of the conversation.

SPEAKER_02: So from the innovation and research and development side,

SPEAKER_02: over the last year, we've developed an evaluation process

SPEAKER_02: for these technologies where we can engage

SPEAKER_02: with the manufacturers, we can test

SPEAKER_02: and validate the technology, we can qualify it

SPEAKER_02: for interconnection onto our system

SPEAKER_02: so that we can be part of that renewable energy journey

SPEAKER_02: that our customers are on as individuals

SPEAKER_02: and give them all the tools necessary

SPEAKER_02: to achieve lowest cost in doing that.

SPEAKER_02: And that's now a standard process

SPEAKER_02: that we utilize across the organization.

SPEAKER_02: We've also done significant work to help inform our customers

SPEAKER_02: on the potential savings of the investments

SPEAKER_02: in the electrification technologies that they're making.

SPEAKER_02: And then on the commercial virtual power plant side,

SPEAKER_02: we've seen huge adoption of batteries

SPEAKER_02: in the residential sector over the last couple years.

SPEAKER_02: I think Rachel Wong was here recently

SPEAKER_02: and talked about 18 to 20 megawatts or so

SPEAKER_02: that's now enrolled in our virtual power plant program,

SPEAKER_02: the My Energy Optimizer Partner Plus,

SPEAKER_02: largely on the residential side.

SPEAKER_02: But as we see the battery opportunity continuing to grow,

SPEAKER_02: understanding what that opportunity looks like

SPEAKER_02: for commercial customers,

SPEAKER_02: where a commercial customer might have more value

SPEAKER_02: associated with backup power than just energy arbitrage.

SPEAKER_02: But when they're making an investment,

SPEAKER_02: how we can co-utilize that technology

SPEAKER_02: to create a mutual benefit,

SPEAKER_02: providing grid reliability, enhancing affordability,

SPEAKER_02: but also providing that customer the value

SPEAKER_02: that they're looking for.

SPEAKER_02: You see that reflected in some of the microgrid work

SPEAKER_02: that we're doing with our local high schools

SPEAKER_02: and that's an opportunity

SPEAKER_02: that we're continuing to build forward.

SPEAKER_02: And then lastly here on this slide,

SPEAKER_02: I wanted to touch a little bit

SPEAKER_02: on the smart panel work that we're doing.

SPEAKER_02: The graph that you're seeing here

SPEAKER_02: in the bottom left hand corner,

SPEAKER_02: in previous years it would have been an image

SPEAKER_02: of a smart panel.

SPEAKER_02: This year I'm excited to say

SPEAKER_02: that we have these units actually deployed.

SPEAKER_02: We're collecting data from customers

SPEAKER_02: that are participating in our pilot.

SPEAKER_02: And this particular data set is from the hours

SPEAKER_02: of 5.15 to 6.15 in the evening on a customer's actual home.

SPEAKER_02: That customer got home, turned on all of their appliances

SPEAKER_02: and with the help of this panel,

SPEAKER_02: we were actually able to support the curtailment

SPEAKER_02: of that customer's load,

SPEAKER_02: mainly their EV charger in this case,

SPEAKER_02: so that they could operate on a 100 amp panel.

SPEAKER_02: That was a cost that they avoided in terms of upgrading.

SPEAKER_02: It was a cost that the grid no longer had to consider

SPEAKER_02: in terms of customers going from 100 amp to 200 amp panels.

SPEAKER_02: And it's exciting to see how we can make best use

SPEAKER_02: of all of the available infrastructure

SPEAKER_02: to electrify customers and bring them along in this journey

SPEAKER_02: and how technology can enable that pathway.

SPEAKER_02: As an engineer, it's always exciting to be able

SPEAKER_02: to have a slide with a little bit of data

SPEAKER_02: and information on it rather than just the picture.

SPEAKER_02: And so I appreciate everyone bearing with me

SPEAKER_02: as I put that on there instead of just the image.

SPEAKER_02: Overall, when we talk about distributed energy resources,

SPEAKER_02: our research focus really is regardless of the topic area

SPEAKER_02: on the integration and operation of DERs.

SPEAKER_02: We're not asking the will this residential battery work.

SPEAKER_02: We know that batteries will charge and discharge.

SPEAKER_02: We're looking at how does this integrate

SPEAKER_02: with our grid operation system?

SPEAKER_02: How does this integrate with our DERMs?

SPEAKER_02: What is the importance of open standards

SPEAKER_02: and interoperability to ensure long-term value

SPEAKER_02: from these resources?

SPEAKER_02: We're reducing those barriers to electrification.

SPEAKER_02: We're making sure that our incentives

SPEAKER_02: and participation payments are properly valued

SPEAKER_02: so that we're getting that value both

SPEAKER_02: for the participating customers,

SPEAKER_02: but also for our community more widely.

SPEAKER_02: And at the end of the day, making sure that we are ready

SPEAKER_02: for innovation and new technology because it's necessary

SPEAKER_02: to get us where we're going.

SPEAKER_03: Yeah.

Unknown: I should dangle this slide.

SPEAKER_03: The bottom blue, right, span drive DT at 32 amps.

SPEAKER_03: Why don't we see, what is that load?

SPEAKER_03: The panel itself is not using 32 amps, I assume.

SPEAKER_02: Oh, span drive is the brand of the EV charger

SPEAKER_02: in this particular household.

SPEAKER_03: Okay, that's the EV charger that sits on there.

SPEAKER_03: Yep, exactly.

SPEAKER_02: So the EV charger alone is providing that level of load.

SPEAKER_03: This is showing us that the heat pump was kicked off

SPEAKER_03: to keep them under their load cap.

SPEAKER_02: And so the charger stepped down,

SPEAKER_02: and as the charger stepped down,

SPEAKER_02: everything above it also shifted down.

SPEAKER_02: So it gives the appearance of the other loads shifting down,

SPEAKER_02: but it's actually the total load that shifts down.

SPEAKER_02: So in this case, it was the EV charger that stepped down.

SPEAKER_02: Okay, cool.

SPEAKER_02: And just the point that as we're sitting

SPEAKER_02: about 75, 80,000 electric vehicles in that range,

SPEAKER_02: not the exact number, and we think about 1.2 million

SPEAKER_02: vehicles, light duty vehicles in the Sacramento area today,

SPEAKER_02: this type of grid integration, this type of control

SPEAKER_02: becomes critical as we think about the potential benefits

SPEAKER_02: of load growth, but also as we think about

SPEAKER_02: how we manage that load growth responsibly.

SPEAKER_03: I saw a statistic, I think it may have been

SPEAKER_03: in the NCAA conference, but I'm not sure I picked it up now.

SPEAKER_03: But it showed on the commercial vehicle fleets, right?

SPEAKER_03: Like less than half were using charge management,

SPEAKER_03: which had me sort of dropping my mouth open

SPEAKER_03: because you weigh over pay.

SPEAKER_03: If you're paying peak demand rates, charging your truck

SPEAKER_03: versus load shifting.

SPEAKER_03: So I definitely think, there's definitely potentially value

SPEAKER_03: in building it in versus assuming that they're going to

SPEAKER_03: make behavioral change on their own, right?

SPEAKER_02: In a couple of slides, I'll talk just a little bit about

SPEAKER_02: an EPRI project that we've taken on that's helping us

SPEAKER_02: better forecast that fleet adoption so that we know

SPEAKER_02: their plans and we can better engage with them to make sure

SPEAKER_02: that our customers are engaged in those

SPEAKER_02: load flexibility programs.

SPEAKER_02: Thank you.

SPEAKER_02: Robotics at SMUD, this is actually the first time

SPEAKER_02: that I've had a chance to present to the board

SPEAKER_02: on one of our newest portfolios in the research

SPEAKER_02: and innovation space.

SPEAKER_02: We have several projects now that are centered

SPEAKER_02: around robotics.

SPEAKER_02: On the left here, we have a wide area fire detection system

SPEAKER_02: that we've piloted and tested.

SPEAKER_02: And that system was first tested again at the hedge facility

SPEAKER_02: using that hedge battery that creates this continual return

SPEAKER_02: on investment and value that we're getting.

SPEAKER_02: The cameras were installed at that location

SPEAKER_02: so that we could test and monitor those batteries.

SPEAKER_02: If there was a failure, we would have early detection

SPEAKER_02: and early notification.

SPEAKER_02: That pilot was successful and we've since actually been able

SPEAKER_02: to work with our power generation team to deploy

SPEAKER_02: those same sensors now across our Rancho Seiko 2

SPEAKER_02: solar development, enhancing the visibility

SPEAKER_02: and monitoring capabilities at that site.

SPEAKER_02: Before I move past this one, I do want to tell a little bit

SPEAKER_02: of a story about this picture in the bottom left here

SPEAKER_02: because you see the label on the image that says smoke,

SPEAKER_02: but it's not coming from our site.

SPEAKER_02: That's actually an image that the camera captured

SPEAKER_02: from the field that's adjacent to our battery yard.

SPEAKER_02: The camera captured that, it notified our operators.

SPEAKER_02: Our operators were actually able to reach out

SPEAKER_02: to the fire responders and that was a fire

SPEAKER_02: that was going to get started, that we were able

SPEAKER_02: to facilitate the response to and get that fire put out.

SPEAKER_02: And so it was that system and that engagement

SPEAKER_02: and that awareness that prevented that brush fire

SPEAKER_02: from being able to scale.

SPEAKER_02: And so real world inaction,

SPEAKER_02: helping keep our community safer.

SPEAKER_02: And so that's something that we were very,

SPEAKER_02: very excited about.

SPEAKER_02: On the right here is our robotics assisted

SPEAKER_02: substation inspection.

SPEAKER_02: Astro, our robot dog, is now roaming 57 of our 270

SPEAKER_02: substations paired with substation inspectors

SPEAKER_02: to provide additional imaging and thermal inspection.

SPEAKER_02: And we're now able to ingest that data,

SPEAKER_02: perform these analyses and make sure that with this

SPEAKER_02: consistent robotic thermal inspection

SPEAKER_02: we're detecting as many failures as possible

SPEAKER_02: and we have opportunities to repair before failure,

SPEAKER_02: keeping reliability up and affordability in place.

SPEAKER_02: We're also looking at future pilots

SPEAKER_02: and potential opportunities for this technology,

SPEAKER_02: whether there's substation inspection opportunities

SPEAKER_02: or other infrastructure opportunities.

SPEAKER_02: And it's an exciting space that's continuing to grow

SPEAKER_02: and I'm sure this won't be the last time

SPEAKER_02: that I present on robotics for this particular presentation.

Unknown: Moving forward to grid innovation,

SPEAKER_02: this is a little bit broader topic,

SPEAKER_02: but we're not just thinking about what those technologies

SPEAKER_02: are at a customer's site or on the distribution system.

SPEAKER_02: We're also looking at advanced conductors.

SPEAKER_02: Building new transmission is a challenge

SPEAKER_02: in any environment, regardless of where you're located.

SPEAKER_02: Advanced conductors are a technology that we are

SPEAKER_02: investigating on the research and development side

SPEAKER_02: to understand how we can utilize new conductors

SPEAKER_02: or new wires on our transmission lines

SPEAKER_02: without having to rebuild the infrastructure,

SPEAKER_02: effectively increasing our load carrying capability

SPEAKER_02: without having to rebuild those towers.

SPEAKER_02: Again, making sure that the best available technology

SPEAKER_02: is part of the solutions that we're planning for long term.

SPEAKER_02: I've talked a little bit about the MEPI batteries

SPEAKER_02: or the hedge battery system in the top right corner here.

SPEAKER_02: I will call out that we continue to have more use cases

SPEAKER_02: that we're developing on this battery,

SPEAKER_02: mainly right now looking at grid forming capabilities

SPEAKER_02: and black start capabilities

SPEAKER_02: so that we can help bring the system back online

SPEAKER_02: more quickly in the event of an outage

SPEAKER_02: and how those batteries can be part

SPEAKER_02: of our recovery strategies.

SPEAKER_02: On the bottom here, it wouldn't be an SD10 presentation

SPEAKER_02: if I didn't have the opportunity

SPEAKER_02: to talk about carbon farming.

SPEAKER_02: We continue to invest in these projects

SPEAKER_02: and monitor the results.

SPEAKER_02: Happily this year, we've actually seen a significant increase

SPEAKER_02: in the performance of the system

SPEAKER_02: and the carbon matter and soil organic testing,

SPEAKER_02: actually exceeding expectations.

SPEAKER_02: And so this is something that we continue to monitor.

SPEAKER_02: Any opportunity that we can have to pair natural carbon capture

SPEAKER_02: alongside our renewable generation sources

SPEAKER_02: to amplify our overall impact for the community

SPEAKER_02: is an opportunity that we're investigating.

SPEAKER_04: Here's just the grid forming and black start capability

SPEAKER_04: with the batteries.

SPEAKER_04: Does that require another device of some kind,

SPEAKER_04: capacitor or some other,

SPEAKER_04: or is it just the batteries themselves?

SPEAKER_02: It is a configuration for the inverters.

SPEAKER_02: It does require a little bit of additional technology

SPEAKER_02: and configuration.

SPEAKER_02: In most cases, it requires an extra battery,

SPEAKER_02: small battery, not a large battery

SPEAKER_02: like the actual utility scale energy storage system.

SPEAKER_02: But you have to have a battery to provide house power

SPEAKER_02: so that the system can turn on in the first place.

SPEAKER_02: And so the addition of that battery,

SPEAKER_02: so basically a backup power unit for the larger container.

SPEAKER_04: Backup batteries for our batteries.

SPEAKER_02: Yeah, and so we need to be reliable first and foremost

SPEAKER_02: so that we can bring that reliability to the community.

SPEAKER_02: And those redundant solutions help us make sure

SPEAKER_02: that we're meeting that requirement.

SPEAKER_04: Thank you.

SPEAKER_02: I talked a little bit about our core research

SPEAKER_02: and partnerships here.

SPEAKER_02: I do want to highlight the opportunity

SPEAKER_02: that I mentioned on the left here under EPRI.

SPEAKER_02: The EVs to scale project.

SPEAKER_02: One of the challenges that was identified

SPEAKER_02: through our partnership with EPRI

SPEAKER_02: is that commercial fleet owners and operators

SPEAKER_02: don't have a good way to communicate their long range

SPEAKER_02: plans for electrification to utilities.

SPEAKER_02: On the utility side, it's difficult for us

SPEAKER_02: to plan for or anticipate things that we don't know.

SPEAKER_02: And so in partnership with EPRI and our work on their EVs

SPEAKER_02: to scale project, we've actually worked with them

SPEAKER_02: to create a portal where these fleet operators can now

SPEAKER_02: input their fleet plans to help inform our forecasts,

SPEAKER_02: to help inform our long range planning,

SPEAKER_02: and to help let us know when we need

SPEAKER_02: to be engaging with them to making sure

SPEAKER_02: that they're participating in these load flexibility

SPEAKER_02: programs.

SPEAKER_02: Oftentimes, the gap is that they don't

SPEAKER_02: know that the program exists because they're not

SPEAKER_02: fully plugged in to the things that we're

SPEAKER_02: doing every single day.

SPEAKER_02: It's not their core job.

SPEAKER_02: So a big part of our effort here is

SPEAKER_02: making sure it's as easy as possible for them

SPEAKER_02: to be aware of those opportunities for us

SPEAKER_02: to engage with them and for them to be

SPEAKER_02: the benefactor of lowest possible cost planning

SPEAKER_02: for the electrification journey that they're on.

SPEAKER_02: Additionally, on the right here, I

SPEAKER_02: do want to call out that our research and development team

SPEAKER_02: are leading subject matter experts

SPEAKER_02: in a number of these areas, but not all areas.

SPEAKER_02: We participate in utility knowledge forums

SPEAKER_02: and industry engagement because we're not necessarily

SPEAKER_02: leaders in every single area, but we

SPEAKER_02: want to make sure that we're taking advantage of all

SPEAKER_02: of the leadership opportunities that others are taking on.

SPEAKER_02: So when other utilities are learning lessons,

SPEAKER_02: when they're investing in technologies that may or may not

SPEAKER_02: work, rather than us learning those same lessons,

SPEAKER_02: reaching out, engaging with our partners and our peers,

SPEAKER_02: and making sure that we're having

SPEAKER_02: a journey that's larger than just Sacramento and SMUD,

SPEAKER_02: and that we're sharing the things that we learn

SPEAKER_02: and that we're learning from our peers.

SPEAKER_02: And so that's an important element of research

SPEAKER_02: and development, as well as we bring that knowledge back

SPEAKER_02: to Sacramento, our community, and the organization.

SPEAKER_02: And then one last slide here, because it

SPEAKER_02: wouldn't be complete without talking about the overall system

SPEAKER_02: that operates our distribution system.

SPEAKER_02: This last year, our outage management system

SPEAKER_02: was updated and deployed on our ADMS.

SPEAKER_02: We're doing our work with microgrids and our school programs.

SPEAKER_02: We've had several presentations, and that's

SPEAKER_02: a project that we're excited to be underway with now.

SPEAKER_02: Our grid edge intelligence, our smart meters, the GIS accuracy

SPEAKER_02: and location awareness applications

SPEAKER_02: were deployed in this year.

SPEAKER_02: And then in the bottom left-hand corner,

SPEAKER_02: through our utilization of AI, we've

SPEAKER_02: now developed over 100 custom models

SPEAKER_02: to help staff internally be more efficient with their work

SPEAKER_02: and make sure that we're delivering the value that we

SPEAKER_02: create in the most effective way possible.

SPEAKER_02: That's a lot of information.

SPEAKER_02: And again, just a highlight of the things

SPEAKER_02: that we do in the innovation space.

SPEAKER_02: And with that, I'd like to conclude by requesting

SPEAKER_02: that the board accept the SD10 monitoring report.

SPEAKER_04: Any questions for the board?

Unknown: Questions?

SPEAKER_03: Could you touch a little bit more on the status of our VGI

SPEAKER_03: initiatives?

SPEAKER_03: I've heard through the grapevine, the Twin Rivers,

SPEAKER_03: VGI has had some issues of one point.

SPEAKER_03: So I guess what's going on with that,

SPEAKER_03: and then how are we doing with our integration

SPEAKER_03: into our Derm system and dispatchability?

SPEAKER_02: Absolutely.

SPEAKER_02: So on the Twin Rivers side, and I

SPEAKER_02: want to highlight the importance of interoperability

SPEAKER_02: as we're looking at these projects,

SPEAKER_02: the vehicle-to-grid technologies and solutions that are available

SPEAKER_02: today are not based on large interoperable standards.

SPEAKER_02: You can't go and buy off the shelf the chargers,

SPEAKER_02: whether it's the DC fast charger or off the shelf

SPEAKER_02: the vehicles that are fully compatible for these solutions.

SPEAKER_02: The technologies are still being developed.

SPEAKER_02: They're still being evaluated.

SPEAKER_02: In the Twin Rivers instance, a shift in a manufacturer's

SPEAKER_02: priority and capability resulted in misalignment of those buses

SPEAKER_02: and the chargers being able to provide that service.

SPEAKER_02: We still completed the full modeling

SPEAKER_02: on the benefit and the potential opportunity.

SPEAKER_02: And we're working with them, along with other school

SPEAKER_02: districts, on their fleet electrification plans

SPEAKER_02: to bring in VGI technology.

SPEAKER_02: But we're being very cautious not

SPEAKER_02: to encourage leaning too far forward

SPEAKER_02: into the actual infrastructure investment or the charger

SPEAKER_02: investment while we make sure that we're prioritizing

SPEAKER_02: that interoperability conversation.

SPEAKER_02: So it's a balanced approach, and we

SPEAKER_02: expect that the learning from that is not expected.

SPEAKER_02: The learning from that is actively informing the research

SPEAKER_02: that we're putting together this year

SPEAKER_02: as we're transitioning back into small scale demonstrations

SPEAKER_02: and pilots over the next year.

SPEAKER_02: It's an opportunity to both protect our customers

SPEAKER_02: and the investment that they're making while also making sure

SPEAKER_02: that we are doing the right work to invest in the research.

SPEAKER_02: On the grid integration side, the work

SPEAKER_02: is focused right now on the managed charging solution,

SPEAKER_02: but it'll use those same communication pathways

SPEAKER_02: and interoperability pathways to transition to V2G

SPEAKER_02: as the technology is available.

Unknown: The other thing I can talk down, just in terms

SPEAKER_03: of the hedge battery and that test bed,

SPEAKER_03: I assume that we're taking those learnings

SPEAKER_03: and they're getting implemented in a country

Unknown: because of those test tiers.

Unknown: It's not an initiation.

SPEAKER_02: The procurement that we originally

SPEAKER_02: did for the hedge battery and the maintenance agreements

SPEAKER_02: that were subsequently developed were

SPEAKER_02: the foundation for the procurement strategies

SPEAKER_02: in those larger scale systems.

SPEAKER_02: So those learnings have been baked in from day one

SPEAKER_02: and continue to inform how we scope and define that project.

SPEAKER_02: That's one of the largest benefits

SPEAKER_02: that we've received from that project,

SPEAKER_02: albeit mostly paper.

SPEAKER_02: But the performance translates into reliability

SPEAKER_02: and strengthens us in our conversations

SPEAKER_02: with those larger battery systems.

SPEAKER_02: Absolutely, yes.

Unknown: Dr. Morris, I just want to add also on the Joseph Rachel.

SPEAKER_07: And the team has a multi, so Rachel's team

SPEAKER_07: is working on a multi-DER, RFP.

SPEAKER_07: We've got responses in for those.

SPEAKER_07: And so that'll help with connecting the programs

SPEAKER_07: into the Durham's application for the operators.

SPEAKER_07: Thank you.

SPEAKER_03: Do you have any public comments on this item?

Unknown: No, we have.

SPEAKER_03: Don't go far.

SPEAKER_03: Number three is next.

SPEAKER_03: All right, so this one, number three

SPEAKER_03: is a monitoring report for strategic direction 19,

SPEAKER_03: which is a diversified business.

SPEAKER_02: Take this away.

SPEAKER_02: Thank you.

SPEAKER_02: Once again, I appreciate the opportunity to present.

SPEAKER_02: There is a lot of consistency and alignment

SPEAKER_02: between SD10 and SD19.

SPEAKER_02: So the opportunity to have these conversations side by side

SPEAKER_02: does create a lot of benefit.

SPEAKER_02: I'll get a chance to talk about V2G

SPEAKER_02: a little bit more in this conversation

SPEAKER_02: and also some of the things that we're doing

SPEAKER_02: in the battery space.

SPEAKER_02: Again, for this particular presentation,

SPEAKER_02: my name is James Frasier,

SPEAKER_02: Director of Research and Development Grants and Partnerships.

SPEAKER_02: SD19 is our focus on diversified business

SPEAKER_02: and really kind of zooming in on how we're generating

SPEAKER_02: new revenues that contribute

SPEAKER_02: to our long-term financial health.

SPEAKER_02: To that end, we organize our conversation around SD19

SPEAKER_02: into three general categories.

SPEAKER_02: Revenue services, work that we're doing in exchange

SPEAKER_02: for payment, technology partnerships,

SPEAKER_02: largely revenue sharing agreements, joint sale agreements,

SPEAKER_02: or potentially stock warrant type agreements.

SPEAKER_02: And then our grants and external funding

SPEAKER_02: that we use to amplify our work and our investments.

SPEAKER_02: From a new business development strategy,

SPEAKER_02: I did want to talk just a little bit

SPEAKER_02: about our intake process.

SPEAKER_02: Over the course of any given year,

SPEAKER_02: we receive a very significant number of opportunities

SPEAKER_02: and outreach from private sector, from public sector,

SPEAKER_02: from companies, from interested community members.

SPEAKER_02: And so we've developed a thoughtful

SPEAKER_02: and thorough intake process that lets us quickly screen

SPEAKER_02: those opportunities that are genuine new business

SPEAKER_02: development opportunities versus opportunities

SPEAKER_02: for us to be advisors to community members

SPEAKER_02: or advisors to regional partners.

SPEAKER_02: And making sure that we're being as effective as possible

SPEAKER_02: with the time of our team and organization

SPEAKER_02: and that we're highlighting and accelerating

SPEAKER_02: those opportunities that have genuine opportunity

SPEAKER_02: to create new business development relationships.

SPEAKER_02: We then follow through with a detailed evaluation process

SPEAKER_02: prior to getting to a point where we would establish

SPEAKER_02: new partners and then ongoing monitoring

SPEAKER_02: of those partners.

SPEAKER_02: In this last year, we had 10 connections

SPEAKER_02: that made it through that initial intake phase

SPEAKER_02: to full evaluation.

SPEAKER_02: And we have five partnerships that we are monitoring

SPEAKER_02: as part of our ongoing relationships.

SPEAKER_02: And I'll touch on those shortly.

SPEAKER_02: Overall, the portfolio revenue for the reporting period here

SPEAKER_02: was just under $22 million with costs of $16 million

SPEAKER_02: to support the portfolio.

SPEAKER_02: Net revenue totaling $5.8 million for the SD19 portfolio.

SPEAKER_02: Included in that portfolio is our community energy services

SPEAKER_02: business.

SPEAKER_02: This is our eighth year, or this reporting year

SPEAKER_02: was our eighth year in operation with nine of the CCAs

SPEAKER_02: across California.

SPEAKER_02: And we are still providing 12 major service offerings

SPEAKER_02: across those.

SPEAKER_02: We do see considerable growth, both expansion, mergers,

SPEAKER_02: and interest in the CCA industry.

SPEAKER_02: Growing number of service providers as well.

SPEAKER_02: Number of the conversations with our CCAs

SPEAKER_02: actually look a lot like the conversations

SPEAKER_02: with our regional partners and peers.

SPEAKER_02: Increasing price sensitivity, seeing a lot of challenges

SPEAKER_02: around affordability.

SPEAKER_02: And so we're making sure that we're partnering

SPEAKER_02: with those CCAs to map that path forward.

SPEAKER_02: On the technology partnership side.

SPEAKER_02: Oh, please.

SPEAKER_06: Various elected officials in the last few months.

SPEAKER_06: And there's been some swirl.

SPEAKER_06: So can you give a little bit more update as to

SPEAKER_06: where we are, what we plan to do?

SPEAKER_06: Because I don't know if our partners quite know

SPEAKER_06: what our plan is.

SPEAKER_06: What have we communicated?

SPEAKER_06: What have we, are going to communicate?

SPEAKER_06: Because it seems unclear with some of the people

SPEAKER_06: I've run into.

SPEAKER_06: And it's a little awkward because we haven't gotten

SPEAKER_06: very much except an email a few months ago.

SPEAKER_06: So is there anything publicly available that we can say?

SPEAKER_06: I did look in my email again to see if there was

Unknown: an update from, was it August?

SPEAKER_06: I might have missed it.

SPEAKER_06: But it seems, I just ran into someone like a week or two

SPEAKER_06: ago and I just didn't know how to answer

SPEAKER_02: where we were going.

SPEAKER_02: So from the community energy services side,

SPEAKER_02: we're continuing to provide all of the services

SPEAKER_02: that we provide to our CCA clients with the absolute

SPEAKER_02: commitment to the level of quality that we provide.

SPEAKER_02: As we look at the service from an SD19 perspective,

SPEAKER_02: it's important that we maintain that affordability

SPEAKER_02: component and that we're being thoughtful about

SPEAKER_02: the price changes in the industry.

SPEAKER_02: When we think about what that means for us,

SPEAKER_02: it really becomes a function of making sure that

SPEAKER_02: the partnerships that we have in place are helping us

SPEAKER_02: deliver the lowest possible cost solutions.

SPEAKER_02: And that we are doing that in a way that is sustainable

SPEAKER_02: for both our clients and for SMUD.

SPEAKER_02: We don't have any specific plans right now that are absolute

SPEAKER_02: as to what that means, but we are working on understanding

SPEAKER_02: how partners can help us deliver these services

SPEAKER_02: more effectively.

SPEAKER_02: And without that, we are subject to the same price increases

SPEAKER_02: and sensitivity that the larger industry is exposed to.

SPEAKER_02: It's the same challenges that we see internally

SPEAKER_02: for SMUD core work as we think about what

SPEAKER_02: a price in 2026 looks like compared to what that same

SPEAKER_02: product cost in 2022.

SPEAKER_02: And so when we think about our long term strategy,

SPEAKER_02: we're adapting to that new environment and making sure

SPEAKER_02: that we're making those strong financial decisions

SPEAKER_02: both for our community, but also to ensure that we have

SPEAKER_02: good continuity of service and that we're amplifying

SPEAKER_02: the public power benefit that CCA's provide to California

SPEAKER_02: as we map these plans forward.

SPEAKER_06: So a secondary question is I run into people at the time

SPEAKER_06: that love SMUD that are not currently being served by us.

SPEAKER_06: And again, I'm not sure.

SPEAKER_06: Are we looking to expand this business?

SPEAKER_06: Because again, I don't know what to say because they're like,

SPEAKER_06: oh, you know, there's such a, and we can't annex anybody

SPEAKER_06: anywhere, are we looking to just maintain the nine?

SPEAKER_06: Are we looking to expand?

SPEAKER_06: Because I know from my understanding from these people

SPEAKER_06: I've run into, there's RFPs coming out in the next

SPEAKER_06: six to 12 months and I don't know the status.

SPEAKER_06: I don't know if we're bidding on them or partnering or what are we,

SPEAKER_06: so what is our overall strategy?

SPEAKER_06: Because I know they're hitting soon or have hit or...

SPEAKER_02: So as of right now, and there was actually a very recent RFP

SPEAKER_02: that came out, we're not actively responding to those RFPs

SPEAKER_02: because it's important to us that we understand

SPEAKER_02: that business model and those long term cost structures

SPEAKER_02: so that we can have the right level of commitment

SPEAKER_02: to the service that we provide.

SPEAKER_02: And so the immediate answer is not actively growing,

SPEAKER_02: but that is a function of needing to understand

SPEAKER_02: what that long term business strategy looks like

SPEAKER_02: and how we can create that sustainable value

SPEAKER_02: for both us and our clients.

Unknown: I will call out that the health and strength of the CCA industry

SPEAKER_02: is significantly important and the work that they do

SPEAKER_02: in decarbonizing energy across California

SPEAKER_02: is important to the overall journey that we're collectively on.

SPEAKER_02: So the sustainability of that industry,

SPEAKER_02: both from an affordability standpoint

SPEAKER_02: and a reliable service provider standpoint

SPEAKER_02: is absolutely critical.

Unknown: Touching quickly on the other five partners in our portfolio here,

SPEAKER_02: all of these partners are partners that were in previous reports.

SPEAKER_02: You will see Emerson as a new name on this list.

SPEAKER_02: Emerson actually acquired Aspen Tech,

SPEAKER_02: which had previously acquired OSI.

SPEAKER_02: So it is a new name, but this is our DERMS delivery partner

SPEAKER_02: where we focus on co-development

SPEAKER_02: of distributed energy resource management system applications.

SPEAKER_02: This is how we are operating those DERs on the grid.

SPEAKER_02: SMUD being a leader in this industry

SPEAKER_02: has the opportunity to take those innovations,

SPEAKER_02: those solutions that are developed here first

SPEAKER_02: and through this partnership,

SPEAKER_02: monetize that investment that we've made.

SPEAKER_02: Similarly with ITRON and SEW,

SPEAKER_02: we're making those early investments,

SPEAKER_02: those leadership investments.

SPEAKER_02: Uplight is the operator of our SMUD Energy Store.

SPEAKER_02: So as we're supporting electrification for our customers

SPEAKER_02: and making those devices available to them,

SPEAKER_02: making sure that some of that benefit is coming back to our community

SPEAKER_02: through those purchases.

SPEAKER_02: ESS at the bottom of the list here,

SPEAKER_02: in 2025, the partnership here concluded.

SPEAKER_02: This will be the last report that includes them as a listed partner.

SPEAKER_02: And so that partnership did successfully conclude in 2025.

SPEAKER_02: Jumping onto the grant side of the conversation,

SPEAKER_02: we have 12 active grants under management.

SPEAKER_02: On the left side here, we can see the breakdown of that.

SPEAKER_02: That represents right at about $240 million worth of project work

SPEAKER_02: that's enabled by grants.

SPEAKER_02: For this particular segment,

SPEAKER_02: roughly $94 million of that is funded directly from grants.

SPEAKER_02: $145 million is from SMUD.

SPEAKER_02: This is largely planned work, critical upgrades to our systems,

SPEAKER_02: thinking about things like infrastructure on our downtown grid.

SPEAKER_02: And so this is investment and dollars that are offset

SPEAKER_02: that help us maintain affordability

SPEAKER_02: and accelerate the impact of the investments that we're making.

SPEAKER_02: We've had some notable new additions.

SPEAKER_02: The SARE grant, which is the downtown grid grant that I just mentioned,

SPEAKER_02: being the largest of those,

SPEAKER_02: roughly a $25 million award for that particular opportunity.

SPEAKER_02: And then we also have successfully closed out four grants in this period,

SPEAKER_02: which is exciting because it's not just did you win the award,

SPEAKER_02: but also were you able to deliver the work to complete the project

SPEAKER_02: and successfully close that out.

SPEAKER_02: Our ability to close out grants is a direct function

SPEAKER_02: of how good of an investment we are for these funding agencies.

SPEAKER_02: And so creating this cycle of winning the award,

SPEAKER_02: delivering the work and closing out the grant

SPEAKER_02: is exactly the type of track record we're excited to be establishing

SPEAKER_02: and a point of pride for us.

SPEAKER_02: Jumping on, we've also had significant advancements and successes

SPEAKER_02: in the space of advanced manufacturing and regional development.

SPEAKER_02: As leaders and in the technology space

SPEAKER_02: and having a strong foundation that is Sacramento,

SPEAKER_02: one of the opportunities that we've had is to leverage our investment

SPEAKER_02: into things like battery energy storage and advanced technologies

SPEAKER_02: to bring companies here into Sacramento.

SPEAKER_02: We have now established a very real footprint in the energy storage space,

SPEAKER_02: with Peak Energy opening their doors here in Sacramento earlier this year,

SPEAKER_02: Cunetic, an additional flywheel battery energy storage company,

SPEAKER_02: who is opening their facilities here,

SPEAKER_02: Sparks and Leacap also in the battery space, CalEpic,

SPEAKER_02: doing advanced technician training and green career training,

SPEAKER_02: supporting a region-ready workforce to help uplift our community

SPEAKER_02: and get them into the careers that these businesses offer.

SPEAKER_02: Thank you to our board for supporting a number of the ribbon cuttings

SPEAKER_02: and the events associated with these

SPEAKER_02: and being part of bringing these companies to our community.

SPEAKER_02: The investment to Cunetic actually came from a board referral,

SPEAKER_02: and them coming to this region was an opportunity

SPEAKER_02: that was enabled through that conversation.

SPEAKER_02: So that's an exciting one to share.

SPEAKER_02: On the bottom right-hand corner here,

SPEAKER_02: you will see that there are other emerging opportunities,

SPEAKER_02: not listing the company names specifically here,

SPEAKER_02: but we are looking at electric vehicle charging manufacturing

SPEAKER_02: as an opportunity for the region,

SPEAKER_02: bringing battery recycling to the region,

SPEAKER_02: a service that's woefully lacking in California,

SPEAKER_02: given the amount of electrification both in vehicles

SPEAKER_02: and residential battery systems that we're seeing,

SPEAKER_02: and also building on our presence as a semiconductor

SPEAKER_02: and design and fabrication hub for Northern California.

Unknown: Diving just a little bit deeper into CalEpic,

SPEAKER_02: before I talk about CalEpic,

SPEAKER_02: just a reminder that CalEpic was formerly the California Mobility Center,

SPEAKER_02: an organization that SMUD helped start in 2019.

SPEAKER_02: The organization got off to a small start

SPEAKER_02: because they were quickly hit with COVID,

SPEAKER_02: and there was challenges moving through that period

SPEAKER_02: for a company that was trying to grow as a nonprofit into this space.

SPEAKER_02: In this last year, I'm very excited to report

SPEAKER_02: that through support from the community,

SPEAKER_02: through the hard work of SMUD and other regional partners,

SPEAKER_02: and through grants that have been secured by CalEpic,

SPEAKER_02: they're now on solid footing

SPEAKER_02: and providing a very meaningful service to our community.

SPEAKER_02: They've won over $5 million worth of grants to support this vision.

SPEAKER_02: They've just recently moved into their new facility at Depot Park,

SPEAKER_02: which is a 33,000-square-foot facility

SPEAKER_02: where they're providing green careers training,

SPEAKER_02: forklift training, job upscaling.

SPEAKER_02: They're also the main training partner for Rivian

SPEAKER_02: on their electric vehicle technician program.

SPEAKER_02: This is a program that Rivian partners with CalEpic

SPEAKER_02: and provides at that facility.

SPEAKER_02: It's a 24-week program

SPEAKER_02: where technicians participate in training and an apprenticeship

Unknown: to learn how to service Rivian vehicles.

SPEAKER_02: It's a paid program, and at the end of this program,

SPEAKER_02: there's a guaranteed job for these technicians to deploy

SPEAKER_02: and support the growth of the EV maintenance network

SPEAKER_02: across the entire country,

SPEAKER_02: happening here in Sacramento because of the work

SPEAKER_02: that was started in 2019 with California Mobility Center

SPEAKER_02: and the continued support from the community to make this a success.

SPEAKER_02: Over 900 people now have been trained,

SPEAKER_02: and at the bottom here, one of the highlights for me

SPEAKER_02: is we're talking about the potential impact

SPEAKER_02: of vehicle-to-grid technology and electric vehicle charging.

SPEAKER_02: They've been selected as the Charge Yard Grant recipient

SPEAKER_02: by the California Energy Commission.

SPEAKER_02: This establishes them as the first EVSE testing center

SPEAKER_02: for vehicle-to-grid technologies.

SPEAKER_02: When we talked about the importance of interoperability,

SPEAKER_02: when we talked about the importance of standards

SPEAKER_02: and making sure that we're being part of that education

SPEAKER_02: and advisory service to make good investments into technology

SPEAKER_02: and to evaluate it,

SPEAKER_02: one of the things that we've done is helped stand up CalEpic

SPEAKER_02: to be this standards house, to be this testing facility,

SPEAKER_02: so that we can bring standard testing to this industry

SPEAKER_02: and help accelerate the technology.

SPEAKER_02: It's not just something we need,

SPEAKER_02: it's something that we've enabled for the entirety of California.

Unknown: James, I know that they're looking for a location for that,

SPEAKER_04: and they've actually approached SACRT about one of our light rail stations,

SPEAKER_04: and it's not going to work there for a variety of reasons,

SPEAKER_04: but do they have a location for this yet?

SPEAKER_04: And I think they were interested in some potential smudge property as well.

Unknown: We are working very hard with them to find locations to fit their needs.

SPEAKER_02: I would be very open to suggestions for those locations,

SPEAKER_02: and we are also looking at our own.

SPEAKER_02: I do not believe that there's a final determination on the site at this time.

Unknown: With that, I request that the board accept this presentation

SPEAKER_02: on our SD19 monitoring report.

Unknown: Is there any board questions or comments?

SPEAKER_03: James, I have one quick question.

SPEAKER_03: Remember we had that agreement several years ago with TEPCO,

SPEAKER_03: the Tokyo Electric.

SPEAKER_03: What happened?

SPEAKER_02: What is the status of that?

SPEAKER_02: So that agreement is still in place.

SPEAKER_02: We are still sharing learnings.

SPEAKER_02: That particular agreement was largely focused on the CHADMO charging technology,

SPEAKER_02: which has not proliferated here in the United States.

SPEAKER_02: But the grid impact of the vehicle to grid technology remains consistent

SPEAKER_02: regardless of the charging technology.

SPEAKER_02: We continue to share information and build on that relationship,

SPEAKER_02: but the focus on CHADMO kind of shifts the priority of that particular conversation.

SPEAKER_03: Okay.

SPEAKER_03: Is there any public comment on this one?

SPEAKER_00: No, there's not.

SPEAKER_03: Thank you.

SPEAKER_03: All right.

SPEAKER_03: Let's jump to item number four.

SPEAKER_03: This is the board monitoring of the governance process for GP8,

SPEAKER_03: board committee principals, GP10, board training, orientation,

SPEAKER_03: GP12, board compensation benefits, and GP15, board travel and training reimbursement.

SPEAKER_03: I scrolled through the slides.

SPEAKER_03: Everything was marked as high.

SPEAKER_03: There was no board comment.

SPEAKER_03: Does anybody have any concerns or comments with this?

SPEAKER_03: I don't see any.

SPEAKER_03: Should we move on?

Unknown: Any public comment?

SPEAKER_00: A public comment.

SPEAKER_03: Okay.

SPEAKER_03: Then we'll skip to item number five, which is the board work plan.

SPEAKER_05: So we went over this pretty recently.

SPEAKER_05: I'm just going to talk about a few significant highlights of our work plan.

SPEAKER_05: One is next week we'll be kicking off our IRP process,

SPEAKER_05: describing what the public process is going to be.

SPEAKER_05: And then we're going to have a budget preview also next week

SPEAKER_05: for eventual approval of our budget on December 10th.

SPEAKER_05: We'll be looking at our carbon sequestration efforts.

SPEAKER_05: And contrary to what we've been thinking, and this is the biggest change,

SPEAKER_05: is that we will be starting our conversation about a policy on large loads next month

SPEAKER_05: rather than waiting for next year.

SPEAKER_05: So I think look forward to that.

SPEAKER_05: And that will be, I think, the only thing on the agenda

SPEAKER_05: because we may get a lot of public interest on that particular item.

SPEAKER_05: I think hopefully our discussion of that will hopefully tamp down

SPEAKER_05: some of the anxiety about it.

SPEAKER_05: Because I know that people are concerned about where we are with that.

SPEAKER_05: So we are going to have our legislative update with McGuire Whitney on the 18th.

SPEAKER_05: And then a security presentation, a closed session, I believe, on December 8th.

SPEAKER_05: And we'll be discussing our...

SPEAKER_05: Let me make sure I got that right again.

SPEAKER_05: More discussion about our IRP foundational elements in December.

SPEAKER_05: And start thinking about what committees you might be interested in.

SPEAKER_05: We'll be talking about that for next year's committees.

SPEAKER_05: And then our parking lot, we have community workforce agreements.

SPEAKER_05: Balcony solar, floating solar, and other solar technologies.

SPEAKER_05: Any other things that we'd like to have on there?

SPEAKER_03: I definitely have concerns about the large load policy.

SPEAKER_03: As long as we start that process next month, I'm okay.

SPEAKER_03: I just have some concerns about staff inertia and doing things as we always do.

SPEAKER_03: And then potentially having staff come and say,

SPEAKER_03: well, we've already done everything.

SPEAKER_03: We have to approve it now.

SPEAKER_03: And I don't want to get us into a corner if it's avoidable before we have this policy

SPEAKER_03: fully thought out and in place.

SPEAKER_03: So I think we're in a good place based on the discussion we've been having.

Unknown: Which is my two cents.

Unknown: Okay.

Unknown: All right.

Unknown: Anything else?

SPEAKER_03: And then just one note, I brought up the budget meeting.

SPEAKER_03: I decided to not go off to the solar renewable energy conference.

SPEAKER_03: I'll be here for the budget meeting that night.

SPEAKER_03: Such as FYI on that.

SPEAKER_03: We're not touching that.

Unknown: All right.

Unknown: That's all I have.

SPEAKER_03: Okay.

SPEAKER_03: And then the last item is probably items.

SPEAKER_03: Is there any public comments on items not on the agenda or anything on the work plan?

SPEAKER_00: No public comments on items on the agenda.

Unknown: Okay.

Unknown: And then we have any comments on the work plan?

SPEAKER_00: Oh, and no comments on the work plan.

SPEAKER_03: Okay.

SPEAKER_03: Thank you.

SPEAKER_03: And then is there any summary of the committee direction?

Unknown: Did we create any work?

Unknown: I think I'd ask for information about.

SPEAKER_05: Yeah.

SPEAKER_00: I have that.

SPEAKER_00: I have that we.

SPEAKER_00: Staff will update the board on our outreach to our med rate customers related to plan

SPEAKER_00: power shutoffs.

SPEAKER_00: I know that we do outreach to our med rate customers before we de-energize something

SPEAKER_00: that's specifically called out in our wildfire mitigation plan.

Unknown: I think we also have just a general program for our vulnerable customers regardless of

SPEAKER_00: where they're on the med rate where they can sign up for additional notice.

SPEAKER_00: But we'll confirm that and provide more details on that.

Unknown: Thank you.

Unknown: Sounds good.

SPEAKER_03: All right.

Unknown: And then just a reminder that written comments received on items on the agenda will be added

SPEAKER_03: to the record if received within two hours after the end of the meeting.

SPEAKER_03: With that, we will be adjourned.

SPEAKER_03: Thank you.