Policy Oct 08 2025
Ep. 26

Policy Oct 08 2025

Episode description

Policy Committee meeting, held October 08, 2025 at 07:57 PM

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0:00

Unknown: 🎶

0:27

Unknown: the

3:17

SPEAKER_02: Yeah, yeah, yeah, you know the deal.

3:19

SPEAKER_02: Okay, we're about ready?

3:21

SPEAKER_07: Wait, no.

3:25

SPEAKER_02: We're gonna turn the mics on.

3:30

SPEAKER_02: Okay, good evening and welcome to the policy committee

3:33

SPEAKER_02: and special board meeting of October 8, 2025.

3:36

SPEAKER_02: This room is equipped with a safety alarm.

3:38

SPEAKER_02: If the alarm sounds, please leave in an orderly manner

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SPEAKER_02: via the exits to the lobby or behind the desk.

3:43

SPEAKER_02: Assemble in front of the building

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SPEAKER_02: and wait for the all clear announcement

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SPEAKER_02: from security before re-entering.

3:48

SPEAKER_02: This meeting is being recorded

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SPEAKER_02: and can be accessed on SMUD's website.

3:52

SPEAKER_02: Please remember to unmute your microphone

3:53

SPEAKER_02: when speaking in order that our virtual attendees may hear.

3:56

Unknown: And the microphone will display a green indicator light

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SPEAKER_02: when the mic is on.

4:00

Unknown: For members of the public attending in person

4:02

Unknown: who wish to speak at this meeting,

4:04

SPEAKER_02: please fill out a speaker's request form

4:06

SPEAKER_02: located at the table outside of the room

4:07

SPEAKER_02: and hand it to SMUD security.

4:09

SPEAKER_02: I've already got quite a few,

4:10

Unknown: but so I think most of you have figured this out.

4:13

SPEAKER_02: Members of the public attending this meeting,

4:16

SPEAKER_02: virtually who wish to provide verbal comments

4:18

SPEAKER_02: during the committee meeting may do so

4:19

SPEAKER_02: by using the raise hand feature in Zoom

4:22

SPEAKER_02: or pressing star nine while dialed

4:24

SPEAKER_02: into the telephone toll-free number

4:26

SPEAKER_02: at the time the public comment is called.

4:28

SPEAKER_02: Technical support staff will enable the audio for you

4:31

SPEAKER_02: when your name is announced during the public comment period.

4:34

SPEAKER_02: You may also submit written comments

4:35

SPEAKER_02: by emailing them to publiccommentatsmud.org.

4:39

SPEAKER_02: Written comments will not be read into the record

4:41

SPEAKER_02: but will be provided to the board electronically

4:44

SPEAKER_02: and placed into the record of the meeting

4:46

SPEAKER_02: and may have received within two hours

4:47

SPEAKER_02: after the meeting ends.

4:49

SPEAKER_02: Chief Legal Officer, please conduct the roll call.

4:53

SPEAKER_02: Director Kurth.

4:56

SPEAKER_12: Director Herber.

4:57

Unknown: Here.

4:58

SPEAKER_12: Chair Sanborn.

4:59

SPEAKER_12: Here.

5:00

SPEAKER_12: Director Herber and Chair Sanborn are present.

5:03

SPEAKER_12: Director Kurth is absent.

5:07

SPEAKER_02: Yeah, and I don't think we have anybody online.

5:10

Unknown: Nancy and Brandon.

5:12

Unknown: Brandon is online.

5:13

Unknown: He needs to be only 10 minutes late online.

5:15

SPEAKER_02: Okay, so Brandon Rose is online.

5:17

SPEAKER_02: Participating remotely.

5:18

SPEAKER_02: Okay.

5:19

SPEAKER_04: I'm online.

5:20

SPEAKER_02: Oh great.

5:21

SPEAKER_02: Welcome, Brandon.

5:25

SPEAKER_02: Excellent.

5:26

SPEAKER_02: So number, agenda item one on tonight's agenda

5:29

SPEAKER_02: is to discuss the monitoring report

5:31

SPEAKER_02: for strategic directive six on safety leadership.

5:35

SPEAKER_02: And that item will be presented by Emily Bachini,

5:40

SPEAKER_02: Interim Director of Environmental Safety

5:41

SPEAKER_02: and Real Estate Services, welcome Emily.

5:43

SPEAKER_02: Great, thank you.

5:45

SPEAKER_05: Good evening, my name is Emily Bachini

5:47

SPEAKER_05: and I'm the Interim Director of the Environmental Safety

5:49

SPEAKER_05: and Real Estate Services team.

5:51

SPEAKER_05: And I'm happy to be here tonight to share with you

5:53

SPEAKER_05: our strategic directive six,

5:55

SPEAKER_05: or SD6 monitoring report for the first half of 2025.

6:00

SPEAKER_05: Our strategic directive six was last updated

6:03

SPEAKER_05: in April of 2021 and that identified five safety objectives

6:07

SPEAKER_05: for workplace contractor and public safety.

6:11

Unknown: While any workplace accident is unacceptable,

6:15

SPEAKER_05: we currently have a goal of 13 severe safety incidents

6:19

SPEAKER_05: or less by this year.

6:21

SPEAKER_05: Those are days away restricted time or DART incidents.

6:25

Unknown: Additionally, we want to ensure our employees

6:27

SPEAKER_05: are receiving quality care so that they can return to work

6:30

SPEAKER_05: if they are injured.

6:32

Unknown: As we continue to work with contractors

6:34

SPEAKER_05: to support our high risk work,

6:36

Unknown: we want to make sure they have the support needed

6:38

SPEAKER_05: to reduce and eliminate potential hazards

6:41

SPEAKER_05: for serious injuries or fatalities.

6:44

SPEAKER_05: And we focus on tracking public safety events

6:46

SPEAKER_05: and injuries that result from our operations or facilities

6:50

Unknown: and look to find measures to reduce those incidents

6:52

SPEAKER_05: and injuries.

6:54

SPEAKER_05: As I mentioned on the previous slide,

6:56

SPEAKER_05: our goal for 2025 is to have no more than 13 injuries

7:01

SPEAKER_05: or incidents that result in days away or restricted time.

7:05

SPEAKER_05: And we're currently on target to meet that goal.

7:09

SPEAKER_05: We had seven DARTs in the first half of 2025,

7:11

SPEAKER_05: along with nine other OSHA recordables.

7:14

SPEAKER_05: Our DART rate is 0.62.

7:17

SPEAKER_05: The utility industry standard is 1.0.

7:21

SPEAKER_05: That number captures the amount of time someone is away

7:24

SPEAKER_05: from their normal work as a result of their incident

7:28

SPEAKER_05: compared to the total number of hours worked.

7:31

SPEAKER_05: In reviewing our DARTs,

7:33

SPEAKER_05: we found that one was a non-preventable incident

7:36

SPEAKER_05: related to a vehicle accident

7:38

SPEAKER_05: that resulted in restricted work activities.

7:41

SPEAKER_05: And then four of those cases were related

7:43

SPEAKER_05: to slips, trips, and falls.

7:45

SPEAKER_05: Staff reviewed data for the last 10 years

7:48

SPEAKER_05: to have an understanding of or take a look

7:51

SPEAKER_05: for patterns that might be available.

7:54

SPEAKER_05: And what we found was that our DARTs doubled in Q3.

7:58

SPEAKER_05: So we had twice as many DARTs typically in the third quarter

8:00

SPEAKER_05: than we did in the first, second, or fourth quarters.

8:03

SPEAKER_05: So we took a really proactive approach

8:06

SPEAKER_05: to reduce that from happening this last year,

8:09

SPEAKER_05: working with our field forces

8:11

SPEAKER_05: to increase awareness of the trend and remind staff

8:15

SPEAKER_05: to take care of each other when they're doing their work,

8:17

SPEAKER_05: to not get complacent,

8:18

SPEAKER_05: to be mindful of external distractions,

8:21

SPEAKER_05: ensure that they're fit for duty when they arrive at work,

8:24

Unknown: and they're right in obligation to stop work

8:26

SPEAKER_05: when conditions change or hazard presents itself.

8:29

SPEAKER_05: And then we also continued messaging in Q3

8:31

SPEAKER_05: around slips, trips, and falls.

8:34

SPEAKER_05: And we only had three incidents in Q3 this last year.

8:37

SPEAKER_05: So again, we're on target to meet the goal

8:39

SPEAKER_05: by the end of the year.

8:43

SPEAKER_05: Our safety team partners

8:44

SPEAKER_05: with the Integrated Disability Management, or IDM,

8:47

SPEAKER_05: to ensure that quality care is provided to our employees

8:50

SPEAKER_05: if they are injured.

8:51

SPEAKER_05: In 2025, we transitioned to a new telemed service

8:56

SPEAKER_05: that allows employees to get triage support 24 hours a day,

8:59

SPEAKER_05: seven days a week.

9:01

SPEAKER_05: SMUD continues to have a reduction in indemnity benefits

9:04

SPEAKER_05: over the last five years, as shown here in this table.

9:08

SPEAKER_05: While the number of claims

9:09

SPEAKER_05: and injury frequency rates have increased,

9:12

SPEAKER_05: our rates per $100 of payroll has decreased.

9:15

SPEAKER_05: This points to a variety of factors, including the injuries.

9:18

SPEAKER_05: Excuse me.

9:19

SPEAKER_08: Can you just explain what that means, rates per 100 payroll?

9:25

Unknown: Sure.

9:26

Unknown: So that's the amount we pay per $100 of payroll.

9:35

Unknown: How else can I explain that?

9:41

Unknown: This is a number that comes from an independent actuary,

9:45

SPEAKER_05: and it's a formula that's built into

9:50

Unknown: integrated disability management programs.

9:53

SPEAKER_05: I can get you some additional information

9:59

SPEAKER_05: around how that number specifically is calculated.

10:03

Unknown: But what it means, if I understand it,

10:05

SPEAKER_02: it's 50 cents for every $100 of payroll they get paid.

10:08

SPEAKER_05: That's correct.

10:08

SPEAKER_05: That's how much we spend on our workers comp program.

10:14

SPEAKER_08: Thank you.

10:15

SPEAKER_05: Thanks, Heidi.

10:16

SPEAKER_05: Director Samborn.

10:16

Unknown: So this points to a variety of factors,

10:23

SPEAKER_05: including that our injuries employees experience

10:26

SPEAKER_05: are less severe than previously,

10:27

SPEAKER_05: and that they're able to return to work sooner

10:30

SPEAKER_05: if they are injured on the job.

10:35

SPEAKER_05: SMUD continues to use the International Supplies Net World

10:38

SPEAKER_05: to evaluate the safety records of our,

10:42

SPEAKER_05: and performance for our high-risk contractors.

10:45

SPEAKER_05: The evaluation focuses on contractor fatality history,

10:48

SPEAKER_05: OSHA citation history, DART,

10:51

SPEAKER_05: and total recordable incident rates,

10:53

SPEAKER_05: safety culture questions, and safety program review.

10:57

SPEAKER_05: And we currently have 160 contractors in the ISN system.

11:01

SPEAKER_05: We continue to conduct site visit evaluations

11:04

SPEAKER_05: of those high-risk contractors

11:06

SPEAKER_05: to validate their safety performance on job sites.

11:10

SPEAKER_05: The safety team completed 231 site visits

11:13

SPEAKER_05: in the first half of the year,

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SPEAKER_05: which puts us well on target to exceed our goal

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SPEAKER_05: of 250 for the year.

11:19

Unknown: And these site visits focus on SMUD contractors

11:23

SPEAKER_05: who work with power generation, line, substation,

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SPEAKER_05: facilities, vegetation management,

11:29

SPEAKER_05: and environmental services,

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SPEAKER_05: doing high-risk work such as high-voltage work,

11:33

SPEAKER_05: working at heights, and vegetation management.

11:37

SPEAKER_05: In the public safety space, our public safety team,

11:40

SPEAKER_05: attends a variety of public safety events in the communities,

11:44

SPEAKER_05: as shown here on the slide.

11:46

SPEAKER_05: Additionally, we track our public safety statistics,

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SPEAKER_05: including asset collisions, electoral contacts,

11:53

SPEAKER_05: and dig-ins, and other injuries to the public

11:57

SPEAKER_05: that are related to our operation and facilities.

12:00

SPEAKER_05: In the first half of 2025,

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SPEAKER_05: we had 125 asset collision incidents,

12:06

SPEAKER_05: one of which resulted in a fatality.

12:09

SPEAKER_05: We had three electrical contacts with no reported injuries,

12:13

SPEAKER_05: and 40 dig-ins with no reported injuries.

12:16

SPEAKER_05: After a dig-in, is there a question?

12:19

SPEAKER_05: Excuse me, I'm sorry, I'm just really interested

12:24

SPEAKER_08: in the safety stuff.

12:27

SPEAKER_08: What would you say the collision incidents were related to?

12:33

SPEAKER_08: Were those mostly cars backing into other cars

12:37

SPEAKER_08: or things like that?

12:39

SPEAKER_05: They're mostly cars or vehicles driving into our poles

12:43

SPEAKER_05: or our pad-mounted transformers.

12:46

Unknown: Thank you.

12:46

SPEAKER_02: So it's mostly not us?

12:48

SPEAKER_02: Correct, it's not us.

12:49

SPEAKER_02: Right, which is why we put up billboards

12:55

SPEAKER_02: and tell people, please don't run into our poles

12:57

SPEAKER_02: and hurt yourself.

12:59

SPEAKER_02: Because truly, it's really sad.

13:00

SPEAKER_02: We lose six people a year

13:02

SPEAKER_02: because they literally run into our stationary poles

13:04

SPEAKER_02: and knock out power, and that's pretty much

13:07

SPEAKER_02: the number one reason we lose power here.

13:09

SPEAKER_02: Does cause a lot of our attitudes.

13:11

SPEAKER_02: Yeah, so it's a very serious issue.

13:13

SPEAKER_02: Get people to pay attention to driving.

13:18

Unknown: And then on this last slide,

13:19

SPEAKER_05: there's a lot of information here

13:21

SPEAKER_05: around our safety for life programs.

13:23

SPEAKER_05: I'm not gonna talk about all of them,

13:24

SPEAKER_05: but I wanna touch on a few.

13:27

SPEAKER_05: First, our learning culture.

13:29

SPEAKER_05: We encourage continuous learning

13:30

SPEAKER_05: from our incidents and our near misses,

13:33

SPEAKER_05: which strengthens our organizational resilience

13:35

SPEAKER_05: as we are able to provide mitigation

13:37

SPEAKER_05: and adaptability in changing environments.

13:41

SPEAKER_05: This culture increases engagement and accountability

13:44

SPEAKER_05: by empowering employees to speak up,

13:47

SPEAKER_05: share their insights, and take ownership of safety.

13:50

SPEAKER_05: They foster a culture of trust, transparency,

13:53

SPEAKER_05: and shared responsibility.

13:55

SPEAKER_05: In the field ergonomic space,

13:57

SPEAKER_05: our initiatives include ergonomic assessments

14:00

SPEAKER_05: and workstation enhancements at key sites,

14:02

SPEAKER_05: including our El Rio substation.

14:06

SPEAKER_05: This demonstrates forward thinking approaches

14:09

SPEAKER_05: to identify and reducing risks for workplace

14:12

SPEAKER_05: musculoskeletal disorders before those injuries occur.

14:17

SPEAKER_05: These efforts reflect our commitment

14:19

SPEAKER_05: to proactive safety cultures and sustainable workforce,

14:22

SPEAKER_05: directly supporting strategic goals

14:24

SPEAKER_05: around operational excellence,

14:26

SPEAKER_05: employee engagement, and long-term injury prevention.

14:30

SPEAKER_05: And then last but not least, in our scorch arena,

14:33

SPEAKER_05: the safely conducted observations reduce common hazards.

14:37

SPEAKER_05: We had over 2,500 office observations

14:42

SPEAKER_05: and 1,300 field observations

14:44

SPEAKER_05: to identify top-risk safe and at-risk behaviors.

14:48

SPEAKER_05: Increased awareness helps reduce

14:50

SPEAKER_05: the future at-risk behaviors from occurring.

14:54

SPEAKER_05: And that concludes my presentation,

14:56

SPEAKER_05: and I'm willing to take any other questions.

14:58

SPEAKER_02: Thank you very much, Emily, and I just wanna thank all the

15:02

SPEAKER_02: staff who are working so hard to make safety

15:04

SPEAKER_02: a top priority at SMUD.

15:05

SPEAKER_02: I was just walking down the stairs from the garage,

15:07

SPEAKER_02: noticed a new sign about make sure you hold the handrail

15:10

SPEAKER_02: and just not focus on your cup of coffee

15:12

SPEAKER_02: and drinking that while you're stumbling down the stairs,

15:15

SPEAKER_02: because trip falls actually are a thing.

15:18

SPEAKER_02: So I think we're doing a really good job,

15:20

SPEAKER_02: and thank you very much.

15:21

SPEAKER_02: Did you have anything you have anything?

15:23

SPEAKER_08: I would just like to say that I also think

15:27

SPEAKER_08: you and your team are doing a good job.

15:31

SPEAKER_08: When I worked here at SMUD, people always said,

15:33

SPEAKER_08: safety comes first, safety comes first, and it does.

15:37

SPEAKER_08: So thank you for putting the power behind those words.

15:42

SPEAKER_02: Certainly, thank you.

15:45

SPEAKER_02: Other board members wanna comment online?

15:48

SPEAKER_02: No, okay.

15:50

SPEAKER_02: Well then thank you very much,

15:51

SPEAKER_02: and this will go in our consent item agenda.

15:55

SPEAKER_02: And do we have any public comment?

15:58

SPEAKER_02: No, we do not.

15:59

SPEAKER_02: Okay, I don't see anybody in the room,

16:01

SPEAKER_02: so we'll go ahead and move on then to agenda item two,

16:04

SPEAKER_02: which is to discuss the monitoring report

16:07

SPEAKER_02: for Strategic Directive 10 on innovation.

16:10

SPEAKER_02: This is always a very fun one to hear

16:13

SPEAKER_02: from our amazing James Frazier,

16:15

SPEAKER_02: who's Director of Research and Development,

16:17

SPEAKER_02: Grants and Partnerships.

16:18

SPEAKER_02: Welcome, James.

16:21

SPEAKER_00: All right, thank you so much.

16:23

SPEAKER_00: I really appreciate the kind welcome,

16:25

SPEAKER_00: and appreciate the opportunity to speak to SD 10,

16:29

SPEAKER_00: our Innovation Directive.

16:31

SPEAKER_00: This is actually my third year reporting on SD 10,

16:34

SPEAKER_00: and it's one that I really, really enjoy talking about.

16:39

SPEAKER_00: One of the things that really resonates with me,

16:41

SPEAKER_00: and I find most inspiring,

16:44

SPEAKER_00: is the places that we find innovation at SMUD.

16:48

SPEAKER_00: We look at research and development

16:50

SPEAKER_00: as being kind of the leading point of innovation,

16:53

SPEAKER_00: and while that is the case,

16:55

SPEAKER_00: we now find ourselves in a spot where

16:57

SPEAKER_00: our research and development engineers and planners

17:00

SPEAKER_00: and even interns are actually sitting

17:03

SPEAKER_00: at the operating desk side by side with the grid operators.

17:05

SPEAKER_00: They're sitting at the energy trading desk

17:09

SPEAKER_00: understanding how we're integrating

17:10

SPEAKER_00: renewable energy resources,

17:12

SPEAKER_00: and how we're thinking about tomorrow.

17:14

SPEAKER_00: So we have those thinkers that are on the horizon,

17:18

SPEAKER_00: but we've brought them side by side

17:20

SPEAKER_00: with the people that are in the seats,

17:21

SPEAKER_00: doing the jobs, keeping the lights on,

17:23

SPEAKER_00: prioritizing affordability.

17:25

SPEAKER_00: One of the sentences that resonates with me

17:28

SPEAKER_00: in the actual direction is delivering

17:31

SPEAKER_00: innovative solutions, products,

17:33

SPEAKER_00: and services to our customers.

17:35

SPEAKER_00: We're not generating reports and concepts

17:38

SPEAKER_00: that are 10 and 20 years down the road.

17:40

SPEAKER_00: We're thinking about what operationalizing

17:42

SPEAKER_00: technologies means, and how we use SD 10

17:45

SPEAKER_00: as a guiding light to actually do that

17:47

SPEAKER_00: and move those things forward.

17:49

SPEAKER_00: At the core of all of that really is the zero carbon plan.

17:52

SPEAKER_00: How we're decarbonizing the electrical system,

17:56

SPEAKER_00: and that being the foundation

17:57

SPEAKER_00: for the things that we're doing.

17:59

SPEAKER_00: One of my favorite visualizations of that

18:02

SPEAKER_00: from an innovation standpoint,

18:04

SPEAKER_00: from a research and development standpoint,

18:06

SPEAKER_00: is really singling out that new technology

18:08

SPEAKER_00: and business model focus.

18:09

SPEAKER_00: That element that's supposed to help us drive

18:11

SPEAKER_00: to that last 10% of the goal,

18:13

SPEAKER_00: and deliver on some of those hardest to decarbonize areas.

18:16

SPEAKER_00: And thinking about how the work that we're doing there

18:18

SPEAKER_00: is taking those concepts, transitioning them into pilots,

18:23

SPEAKER_00: understanding what works and what doesn't,

18:24

SPEAKER_00: and then operationalizing those solutions

18:26

SPEAKER_00: that create real, genuine decarbonization value.

18:30

SPEAKER_00: It's an exciting place to work,

18:32

SPEAKER_00: and I'm really grateful for all the incredible folks

18:35

SPEAKER_00: that are on my team and across the organization

18:37

SPEAKER_00: that contribute to innovation at SMUD.

18:40

SPEAKER_00: I'd like to jump into a little bit of a portfolio overview

18:42

SPEAKER_00: to give some context into the high level metrics

18:46

SPEAKER_00: for how we pursue innovation.

18:49

SPEAKER_00: Looking back, on the left side here,

18:51

SPEAKER_00: we have our three year budget

18:53

SPEAKER_00: that I'll talk about in just a moment.

18:54

SPEAKER_00: And on the right here,

18:55

SPEAKER_00: we have the topic area breakdown for 2025.

18:58

SPEAKER_00: Looking at the chart on the left,

19:00

SPEAKER_00: you see that we have a downward trend in our budget

19:03

SPEAKER_00: over the last three years

19:05

SPEAKER_00: from a research and development standpoint.

19:07

SPEAKER_00: The initial reaction when you see that is,

19:10

SPEAKER_00: are we investing less in research and development?

19:12

SPEAKER_00: Are we doing less work on this topic area?

19:15

SPEAKER_00: And I want to call out what I mentioned earlier,

19:17

SPEAKER_00: that we're continuing to try and move closer

19:19

SPEAKER_00: and closer to operations,

19:21

SPEAKER_00: and implemented solutions when we're looking at research

19:23

SPEAKER_00: and development and innovation.

19:24

SPEAKER_00: And so work that five, 10 years ago,

19:27

SPEAKER_00: maybe would have been purely research and development

19:30

SPEAKER_00: concept projects,

19:31

SPEAKER_00: things that are maybe gonna happen in five and 10 years.

19:34

SPEAKER_00: Now, we're looking at solutions

19:36

SPEAKER_00: that are on the timeline of our zero carbon plan,

19:38

SPEAKER_00: that are in that next one to five year period.

19:40

SPEAKER_00: We're partnering with different contributors

19:44

SPEAKER_00: across the organization.

19:45

SPEAKER_00: Some of this work is budgeted in our capital budget.

19:47

SPEAKER_00: Some of this work is budgeted in our operational budgets.

19:51

SPEAKER_00: Not because it's not innovative,

19:52

SPEAKER_00: but because we're helping with those last steps

19:54

SPEAKER_00: to really operationalize solutions.

19:56

SPEAKER_00: Things like our large scale battery energy storage research,

19:59

SPEAKER_00: which is now partnered with PowerGen,

20:01

SPEAKER_00: our distributed energy resource solutions,

20:04

SPEAKER_00: which is partnered with our distribution

20:06

SPEAKER_00: operation engineering.

20:08

SPEAKER_00: Things like our EV charging platforms,

20:11

SPEAKER_00: which is embedded into our information technology teams.

20:15

SPEAKER_00: It's not just innovation in research and development,

20:18

SPEAKER_00: it's innovation at SMUD.

20:20

SPEAKER_00: Jumping over to the 2025 topic area breakdown,

20:24

SPEAKER_00: there's a couple key areas I wanna call out.

20:26

SPEAKER_00: One is transportation electrification

20:28

SPEAKER_00: is the primary focus in terms of budget

20:32

SPEAKER_00: and topic areas and projects.

20:34

SPEAKER_00: That's not a coincidence.

20:35

SPEAKER_00: We see significant adoption of electric vehicles

20:38

SPEAKER_00: in territory.

20:40

SPEAKER_00: You heard from Rachel Wong about two weeks ago

20:43

SPEAKER_00: on the incredible work that our customer programs

20:45

SPEAKER_00: are doing, nearly 70,000 electric vehicles

20:47

SPEAKER_00: in territory now.

20:49

SPEAKER_00: Statistics that I've heard include roughly one

20:52

SPEAKER_00: in four electric vehicles that were purchased

20:54

SPEAKER_00: in Sacramento last year were electric vehicles.

20:57

SPEAKER_00: Just really inspiring numbers.

20:59

SPEAKER_00: And our focus for research and development and innovation

21:02

SPEAKER_00: is really getting behind those topics

21:04

SPEAKER_00: that are accelerating quickly on the timelines

21:06

SPEAKER_00: that we're working on.

21:08

SPEAKER_00: Looking more specific at projects,

21:11

SPEAKER_00: this is our three year project trend.

21:13

SPEAKER_00: These are actual project counts.

21:15

SPEAKER_00: So not all projects are the same size,

21:17

SPEAKER_00: some are bigger, some are smaller.

21:19

SPEAKER_00: The left set of three bars, from yellow, orange to green,

21:22

SPEAKER_00: goes 23, 24, and 25.

21:25

SPEAKER_00: And so you'll see in 23 to 24,

21:28

SPEAKER_00: we moved from 33 projects down to 22 projects.

21:32

SPEAKER_00: What that represents is a significant focus

21:35

SPEAKER_00: on really identifying those projects

21:37

SPEAKER_00: as the highest priority,

21:39

SPEAKER_00: the ones that really need to move forward

21:40

SPEAKER_00: in order to meet the aggressive timelines that we're on.

21:43

SPEAKER_00: And rather than a broad spectrum of research

21:46

SPEAKER_00: that includes a number of technologies

21:49

SPEAKER_00: that may not be as impactful

21:50

SPEAKER_00: for what we're trying to do near term,

21:52

SPEAKER_00: really putting our resources on the most important work

21:55

SPEAKER_00: to decarbonize and to reach our goals.

21:58

SPEAKER_00: As we moved from 24 to 25,

22:02

SPEAKER_00: we saw that focus of projects result in more projects.

22:05

SPEAKER_00: So we are continuing to grow in our work.

22:07

SPEAKER_00: And a lot of that is enabled

22:09

SPEAKER_00: by working across the organization,

22:11

SPEAKER_00: identifying projects that are more closely tied

22:13

SPEAKER_00: to operations so that we can do more work,

22:16

SPEAKER_00: create more innovation with fewer resources,

22:18

SPEAKER_00: really focusing on efficiency.

22:20

SPEAKER_00: The other element that you'll see,

22:21

SPEAKER_00: I wanna draw your attention to the chart on the right here,

22:25

SPEAKER_00: in the same way, 23, 24, and 25 reporting periods.

22:29

SPEAKER_00: What you'll see going from 24 to 25

22:31

SPEAKER_00: is a significant increase in the number of projects

22:34

SPEAKER_00: that are having a near term impact.

22:36

SPEAKER_00: And that's reflective of the fact

22:37

SPEAKER_00: that when we're looking at things

22:38

SPEAKER_00: like the timing for our 2030 goals

22:40

SPEAKER_00: and what we're trying to do with decarbonization,

22:43

SPEAKER_00: we're starting to move into that window

22:45

SPEAKER_00: where it is in that one to five year timeline.

22:47

SPEAKER_00: And so the importance of having projects

22:49

SPEAKER_00: that will have an impact on that timeline

22:52

SPEAKER_00: becomes more and more important.

22:53

SPEAKER_00: And so that becomes where we're prioritizing those projects

22:56

SPEAKER_00: and the projects that are getting resourced

22:57

SPEAKER_00: with the most important efforts.

23:01

SPEAKER_00: Jumping into some specific project highlights

23:03

SPEAKER_00: that I wanna run through quickly.

23:05

SPEAKER_00: First, looking at our EV ecosystem.

23:08

SPEAKER_00: I talked a little bit about how we're seeing

23:10

SPEAKER_00: a lot of electric vehicle adoption

23:12

SPEAKER_00: in the service territory.

23:15

SPEAKER_00: What that tells us is that the vehicle technology itself

23:18

SPEAKER_00: is very well established.

23:20

SPEAKER_00: You also see a number of chargers going in folks garages.

23:23

SPEAKER_00: You see a number of chargers available in the public.

23:26

SPEAKER_00: What we're looking at from an innovation standpoint

23:28

SPEAKER_00: is asking some difficult questions around

23:30

SPEAKER_00: how do we make sure that we as a utility

23:33

SPEAKER_00: are ensuring access to charging.

23:35

SPEAKER_00: We've completed a research project

23:38

SPEAKER_00: on smart plug technology.

23:39

SPEAKER_00: Again, two weeks ago, you heard about customer programs

23:42

SPEAKER_00: that are actually now deploying those smart plugs

23:44

SPEAKER_00: into apartment complexes and businesses.

23:47

SPEAKER_00: It's just an example of that near market-ready research

23:50

SPEAKER_00: that we're doing and immediately resulting

23:52

SPEAKER_00: in the deployment of that technology

23:54

SPEAKER_00: through customer programs.

23:55

SPEAKER_00: We're also working on development of an EV charging app

23:59

SPEAKER_00: alongside SEW to make access to charging

24:03

SPEAKER_00: and affordability of charging much more available

24:06

SPEAKER_00: and reliable for customers in the territory.

24:09

SPEAKER_00: We have projects underway to install approximately

24:11

SPEAKER_00: 500 level two chargers at multifamily dwellings.

24:14

SPEAKER_00: And we're also upgrading our DC fast charger network

24:17

SPEAKER_00: that is in operation at the Sacramento Valley Amtrak Station

24:21

SPEAKER_00: and the airport.

24:23

SPEAKER_00: Those sites have DC fast chargers.

24:25

SPEAKER_00: They're pretty widely used, but they're outdated technology.

24:29

SPEAKER_00: And so we're upgrading them to higher speed chargers

24:32

SPEAKER_00: and really focused on making sure that

24:35

SPEAKER_00: ride share drivers and high mileage drivers

24:38

SPEAKER_00: have reliable access to EV charging.

24:41

SPEAKER_00: We're looking at high utilization sites.

24:43

SPEAKER_00: And we're also building a new DC fast charger site

24:45

SPEAKER_00: at Sacramento State, which is a location

24:48

SPEAKER_00: which does not have a nearby DC fast charger

24:51

SPEAKER_00: and has a significant opportunity to serve a high number

24:53

SPEAKER_00: of electric vehicles.

24:54

SPEAKER_00: So we're very excited about that as well.

24:57

SPEAKER_00: In addition to access to charging,

24:59

SPEAKER_00: the follow-on question is once the chargers are there,

25:02

SPEAKER_00: once the solutions are in place

25:04

SPEAKER_00: and the vehicles have been adopted,

25:05

SPEAKER_00: how can we incorporate those as resources for the grid?

25:08

SPEAKER_00: This becomes a very leading focus

25:11

SPEAKER_00: for our research and development group.

25:13

SPEAKER_00: We have now run through our research and development effort

25:16

SPEAKER_00: a residential EV managed charging pilot,

25:19

SPEAKER_00: which to date has roughly 1,000 customers enrolled,

25:22

SPEAKER_00: managing those electric vehicles

25:24

SPEAKER_00: and helping coordinate their charging

25:26

SPEAKER_00: with the availability of capacity and energy on the grid.

25:29

SPEAKER_00: Moving forward from managed charging,

25:32

SPEAKER_00: we're looking at actual vehicle to grid technology.

25:35

SPEAKER_00: So today you see commercials for Ford or GM

25:38

SPEAKER_00: and it's the car pulling into the garage and they plug in

25:40

SPEAKER_00: and all of a sudden on a de-energized block,

25:43

SPEAKER_00: the lights on the house turn on.

25:45

SPEAKER_00: And what that is today is vehicle to home technology.

25:49

SPEAKER_00: It's the car powering the home

25:50

SPEAKER_00: while it's disconnected from the grid.

25:52

SPEAKER_00: And what we're interested in is how can that vehicle

25:56

SPEAKER_00: and that battery and that energy storage

25:57

SPEAKER_00: actually interact with the grid

25:59

SPEAKER_00: to help support the infrastructure

26:01

SPEAKER_00: and to help support the investment that we're making

26:03

SPEAKER_00: to enable this electrification rather than just being load.

26:07

SPEAKER_00: Utilizing energy storage where it's available

26:09

SPEAKER_00: is something that we're very excited about.

26:11

SPEAKER_00: We have a number of efforts that are also looking

26:13

SPEAKER_00: at that same technology for school buses

26:16

SPEAKER_00: and how we enable that and what that impact could be.

26:19

SPEAKER_00: We've been working with Twin Rivers

26:21

SPEAKER_00: on a vehicle to grid pilot for the last couple years.

26:24

SPEAKER_00: And now as we're looking forward,

26:26

SPEAKER_00: we're doing an analysis to understand

26:28

SPEAKER_00: what the entire market potential is for those school buses

26:30

SPEAKER_00: to support demand response and utility programs.

26:32

SPEAKER_00: And we're working with bus manufacturers

26:35

SPEAKER_00: to understand how we can expand those programs

26:37

SPEAKER_00: and bring that technology forward.

26:39

SPEAKER_00: This is a very exciting area for innovation

26:41

SPEAKER_00: that we're just starting to really see the tip

26:44

SPEAKER_00: of the iceberg on as we see more

26:46

SPEAKER_00: and more electric vehicles and territory.

26:48

SPEAKER_02: Quick question on that.

26:49

SPEAKER_02: Please.

26:50

SPEAKER_02: How, would you have any preliminary findings

26:53

SPEAKER_02: on that two years of Twin Rivers bus to grid?

26:56

SPEAKER_00: We do.

26:58

SPEAKER_00: So there's actually two channels for that answer.

27:01

SPEAKER_00: One is that the preliminary findings

27:04

SPEAKER_00: have been incorporated and we're working on incorporating

27:06

SPEAKER_00: those into our interconnection process

27:09

SPEAKER_00: so that we can easily bring these types of chargers online

27:12

SPEAKER_00: and we can eliminate any barriers or uncertainty

27:14

SPEAKER_00: around the operation of those chargers for the site hosts.

27:17

SPEAKER_00: That's a really critical component.

27:19

SPEAKER_00: The other element is actually a less enjoyable outcome

27:23

SPEAKER_00: for that particular project where the aggregator

27:26

SPEAKER_00: is no longer operating the vehicle to grid component

27:29

SPEAKER_00: of those chargers.

27:30

SPEAKER_00: So we don't have active vehicle to grid operation today.

27:33

SPEAKER_00: And so they're in the process of evaluating

27:36

SPEAKER_00: going out to bed to find a new aggregator,

27:38

SPEAKER_00: which is something that we're continuing dialogue

27:40

SPEAKER_00: with them and supporting them on.

27:41

SPEAKER_00: And we're also incorporating that into our planning

27:46

SPEAKER_00: and strategy for an expansion of services.

27:49

SPEAKER_00: That's actually a really important component

27:51

SPEAKER_00: for the research is that we partner

27:54

SPEAKER_00: with the first customer to learn those things,

27:56

SPEAKER_00: sometimes the hard way, so that when we bring this forward

27:59

SPEAKER_00: to the broad market, when I hand this program

28:02

SPEAKER_00: our research and development department

28:03

SPEAKER_00: over to our distributed energy solutions team

28:07

SPEAKER_00: and it becomes a program that we know it's gonna work,

28:09

SPEAKER_00: we know it's gonna create the customer value

28:11

SPEAKER_00: that we're looking for and it's reliable.

28:13

SPEAKER_02: That's awesome and to me it's just really efficient

28:16

SPEAKER_02: because it makes more sense to me that we're using

28:18

SPEAKER_02: the batteries that are already in vehicles,

28:21

SPEAKER_02: large vehicles especially, instead of having to buy

28:25

SPEAKER_02: large separate commercial battery storage.

28:28

SPEAKER_02: If we can figure out how these things can go back and forth

28:31

SPEAKER_02: and store renewable power during the day and use it

28:34

SPEAKER_02: and then or release it back when we need it at night.

28:38

SPEAKER_02: The other question I had on EV charging in general

28:42

SPEAKER_02: is I'm pleased to see how many new chargers

28:45

SPEAKER_02: are going in around town but what I think

28:47

SPEAKER_02: we're still not grabbing is the public wants

28:51

SPEAKER_02: convenience, fun and they wanna be able to grab a soda,

28:57

SPEAKER_02: they wanna be able to have cover,

28:59

SPEAKER_02: in the pouring rain, in a parking lot

29:02

SPEAKER_02: that they feel a little exposed in.

29:05

SPEAKER_02: And so that's just like are we ever gonna get to the place

29:08

SPEAKER_02: where this is like charging stations

29:10

SPEAKER_02: or more like gas stations?

29:13

SPEAKER_00: So I believe the answer to that is yes.

29:17

SPEAKER_00: There will be probably in kind of my technical opinion

29:21

SPEAKER_00: two types of stations that we're talking about

29:24

SPEAKER_00: where you're talking about corridor charging stations

29:26

SPEAKER_00: along highways and interstates and major thoroughfares.

29:30

SPEAKER_00: And then I think that we're gonna continue to see

29:32

SPEAKER_00: a growth and proliferation of charging where people live.

29:36

SPEAKER_00: And so for single family homeowners

29:38

SPEAKER_00: that's an easy response.

29:40

SPEAKER_00: You have a house, you likely have a garage,

29:42

SPEAKER_00: you charge in your garage, that's very easy.

29:45

SPEAKER_00: For multi-family dwellings that's more difficult

29:46

SPEAKER_00: and so that's why that's one of the things

29:48

SPEAKER_00: that we're prioritizing helping to find a solution to.

29:51

SPEAKER_02: Yeah and I get that and we can do that

29:53

SPEAKER_02: where a gas you can't fill up at home

29:55

SPEAKER_02: but I still think there's when you're traveling

29:59

SPEAKER_02: it's really important to make it nicer for people

30:02

SPEAKER_02: to pull over and stop and have a safe place

30:05

SPEAKER_02: to use the facilities, get a drink

30:08

SPEAKER_02: and be out of the weather.

30:10

SPEAKER_02: So I would just encourage us, I know that I've been approached

30:14

SPEAKER_02: by at least one company about a year ago

30:15

SPEAKER_02: that had an idea around this.

30:17

SPEAKER_02: I don't know if they've come to you

30:19

SPEAKER_02: or if anything came of that but the idea for me

30:22

SPEAKER_02: was quite compelling as a driver

30:24

SPEAKER_02: just really wanting to not be in the middle

30:26

SPEAKER_02: of a parking lot by myself sometimes.

30:29

SPEAKER_02: So thank you.

30:31

SPEAKER_02: Significant value in reducing the occurrence

30:33

SPEAKER_00: of vandalism as well which is one of the leading causes

30:35

SPEAKER_00: for station availability and downtime.

30:37

SPEAKER_11: Yep.

30:40

SPEAKER_00: Moving to our next kind of theming topic area,

30:44

SPEAKER_00: distributed energy resources.

30:46

SPEAKER_00: In this area we've made considerable advancements

30:48

SPEAKER_00: in how we look at DER operation and control.

30:51

SPEAKER_00: In this past year we've completed both phase two

30:54

SPEAKER_00: and phase three of the development

30:55

SPEAKER_00: of our distributed energy resource management system.

30:58

SPEAKER_00: To put that in the context of what that means,

31:01

SPEAKER_00: it allows us to control distributed energy resources,

31:04

SPEAKER_00: large scale resources based on their location

31:07

SPEAKER_00: on the electrical system.

31:09

SPEAKER_00: It's a step forward from how do we operate this

31:12

SPEAKER_00: based on the energy market and how do we think about this

31:14

SPEAKER_00: in terms of what our thermal plants, our solar arrays

31:17

SPEAKER_00: are doing or what our utility scale solutions are doing

31:20

SPEAKER_00: to how can this battery that's located

31:22

SPEAKER_00: on the distribution system support

31:25

SPEAKER_00: that distribution transformer,

31:26

SPEAKER_00: support the line loading conditions

31:28

SPEAKER_00: based on that particular location.

31:30

SPEAKER_00: And then with phase three it expands on that

31:33

SPEAKER_00: to give us the ability to not just control

31:35

SPEAKER_00: those large resources but to support aggregations

31:38

SPEAKER_00: of a high number of smaller distributed energy resources.

31:43

SPEAKER_00: So instead of one or two batteries based on the location,

31:45

SPEAKER_00: thinking about what it looks like to control 100 batteries

31:48

SPEAKER_00: that are co-located in a small area

31:51

SPEAKER_00: supporting local infrastructure.

31:53

SPEAKER_00: Huge value opportunities and a direct line of convergence

31:57

SPEAKER_00: between this conversation and the vehicle to grid

32:00

SPEAKER_00: and electric vehicle manage charging conversation

32:02

SPEAKER_00: we had on the previous slide.

32:04

SPEAKER_00: We also in this past planning year

32:07

SPEAKER_00: completed the planning and design work

32:09

SPEAKER_00: for a multi-family dwelling project

32:11

SPEAKER_00: that would include the installation of 100 batteries

32:14

SPEAKER_00: at that site.

32:15

SPEAKER_00: The map that you see at the bottom of the sheet here

32:18

SPEAKER_00: is the build out schedule for that particular project.

32:22

SPEAKER_00: So that's individual batteries supporting

32:24

SPEAKER_00: individual households in a multi-family dwelling scenario.

32:27

SPEAKER_00: Very exciting because those are households

32:29

SPEAKER_00: that wouldn't otherwise without this type of project

32:32

SPEAKER_00: have the opportunity to have access to battery resiliency,

32:35

SPEAKER_00: backup power, the ability to arbitrage

32:38

SPEAKER_00: and manage their own energy usage.

32:40

SPEAKER_00: It's a very exciting project.

32:42

SPEAKER_00: I do wanna call out that after this reporting period

32:45

SPEAKER_00: and very recently with the loss of the solar ITC

32:49

SPEAKER_00: and the solar support, this project is now in question

32:52

SPEAKER_00: as to whether the developer still intends to move forward.

32:55

SPEAKER_00: So we've done the work, we've enhanced our process,

32:59

SPEAKER_00: we've made the investments to be able to control

33:02

SPEAKER_00: these types of systems.

33:03

SPEAKER_00: We have considerable learnings from the work

33:04

SPEAKER_00: that we've done here but we are in the unfortunate

33:07

SPEAKER_00: circumstance where the project may not move forward

33:09

SPEAKER_00: to full build.

33:10

Unknown: And that's because you said ITC, is that the federal grant?

33:13

SPEAKER_02: And it's the federal support for solar.

33:16

SPEAKER_00: Yeah, for those that are listening, we had what,

33:18

SPEAKER_02: about $400 million of grants pulled back

33:20

SPEAKER_02: from the federal government.

33:21

SPEAKER_02: So that was one of them, multi-family.

33:24

SPEAKER_00: On the right side here, looking at DER integration.

33:28

SPEAKER_00: So it's not just controlling large numbers of DERs

33:31

SPEAKER_00: but also how we work with those individual DERs.

33:34

SPEAKER_00: We've launched a pilot now where we're evaluating

33:37

SPEAKER_00: smart panels as a means to help electrifying homes.

33:41

SPEAKER_00: And so you see in the bottom right hand corner

33:43

SPEAKER_00: of the picture of a span panel.

33:44

SPEAKER_00: That's actually installed on the side of a customer's house

33:46

SPEAKER_00: in our Meadowview community.

33:48

SPEAKER_00: That panel enables the customer to fully electrify

33:52

SPEAKER_00: their house, a task that would normally require

33:55

SPEAKER_00: 200 amps of service that they're able to do

33:57

SPEAKER_00: with 100 amp panel size.

33:59

SPEAKER_00: The impact is that the service to the home doesn't need

34:02

SPEAKER_00: to be upgraded when two or three houses on that block

34:05

SPEAKER_00: electrify their homes, the transformers don't need

34:07

SPEAKER_00: to be upgraded, significant infrastructure opportunities.

34:11

SPEAKER_00: We're piloting it in R&D so that we can hopefully see

34:14

SPEAKER_00: that type of technology and solution proliferate

34:16

SPEAKER_00: into the operational side and help customers electrify

34:19

SPEAKER_00: and be part of this decarbonization journey

34:21

SPEAKER_00: that we're on.

34:24

SPEAKER_08: James, could you, for the folks who are listening,

34:28

SPEAKER_08: could you give just a brief overview

34:31

SPEAKER_08: of how the span panel works?

34:35

SPEAKER_00: Absolutely.

34:36

SPEAKER_00: So this is a technology that I'm particularly excited about.

34:41

SPEAKER_00: The panel itself, it has individual measuring capability

34:45

SPEAKER_00: on all of the circuits, and so it understands

34:48

SPEAKER_00: how much load is being consumed at any given time.

34:51

SPEAKER_00: And it can help manage those loads so that whatever

34:54

SPEAKER_00: you want to be powering is going to be able to draw

34:57

SPEAKER_00: that power without exceeding the hardware limitation

35:00

SPEAKER_00: or the connection limitation that the household

35:02

SPEAKER_00: would normally have through a 100 amp panel.

35:05

SPEAKER_00: So you can imagine having your air conditioner set

35:07

SPEAKER_00: to 74 degrees and your electric vehicle charging

35:10

SPEAKER_00: and you turn on your microwave.

35:12

SPEAKER_00: Well, if that microwave would have normally exceeded

35:14

SPEAKER_00: your rating, you can imagine that a breaker's gonna trip.

35:17

SPEAKER_00: You might have power go out in a part of your house

35:20

SPEAKER_00: and you have to go out to the garage,

35:21

SPEAKER_00: you have to figure out what happened.

35:22

SPEAKER_00: In this instance, the smart panel is gonna register

35:25

SPEAKER_00: that you're consuming that excess amount of power.

35:27

SPEAKER_00: And it may temporarily throttle down that EV charging rate

35:31

SPEAKER_00: so that you can finish microwaving your food.

35:33

SPEAKER_00: And when that microwave is done, that EV charger

35:37

SPEAKER_00: is gonna then throttle back up.

35:39

SPEAKER_00: The really compelling part about the SPAN solution

35:41

SPEAKER_00: in particular is that they also have an app

35:44

SPEAKER_00: that allows the individual customers

35:46

SPEAKER_00: to set their prioritization.

35:48

SPEAKER_00: And so you may have a high priority that I need

35:50

SPEAKER_00: my electric vehicle charged.

35:52

SPEAKER_00: You can set that as a highest priority.

35:54

SPEAKER_00: That may matter less to me.

35:55

SPEAKER_00: I may be having all night to charge,

35:58

SPEAKER_00: but I really wanna make sure that my air conditioner

35:59

SPEAKER_00: is running.

36:00

SPEAKER_00: I can have my own priorities and how that panel

36:02

SPEAKER_00: helps manage my energy to make sure that I can operate

36:06

SPEAKER_00: in that 100 amp threshold and avoid that cost

36:09

SPEAKER_00: of upgrading the panel myself,

36:10

SPEAKER_00: but also help the utility avoid that cost

36:12

SPEAKER_00: for upgrading the infrastructure that's needed

36:14

SPEAKER_00: to serve that higher capacity.

36:17

Unknown: Thank you.

36:18

SPEAKER_02: And James, just so people know,

36:20

SPEAKER_02: I mean upgrading a panel is very expensive.

36:22

SPEAKER_02: Yes.

36:23

SPEAKER_02: What are we talking, like 10,000?

36:25

SPEAKER_02: Like 10,000 dollars potentially more,

36:27

SPEAKER_00: depending on the location of the meter

36:29

SPEAKER_00: relative to the sidewalk of the house

36:31

SPEAKER_00: and the front of the house.

36:32

SPEAKER_00: We've seen numbers as high as 20,000 dollars or more.

36:36

SPEAKER_02: So that's a huge barrier to entry for people

36:39

SPEAKER_02: to get an electric vehicle or anything like that

36:40

SPEAKER_02: if they've got a 100 amp panel.

36:42

SPEAKER_02: Absolutely.

36:43

SPEAKER_02: This is a great solution.

36:44

SPEAKER_02: I hope it all works out, yeah.

36:45

SPEAKER_00: Yep.

36:47

SPEAKER_00: Going further, on the bottom right here,

36:49

SPEAKER_00: we've seen a lot of technology around meter collars.

36:53

SPEAKER_00: In the last couple of years, we did a pilot with Tesla.

36:56

SPEAKER_00: They were one of the first ones

36:57

SPEAKER_00: with this piece of technology.

36:59

SPEAKER_00: It really helps reduce the installation time

37:02

SPEAKER_00: for solar systems.

37:03

SPEAKER_00: It increases the efficiency of home resiliency

37:08

SPEAKER_00: and backup power systems.

37:10

SPEAKER_00: You see that the meter collar is actually mounted

37:12

SPEAKER_00: directly underneath the SMUD meter in that picture.

37:15

SPEAKER_00: This was a very compelling project

37:17

SPEAKER_00: that we piloted with Tesla.

37:18

SPEAKER_00: Since then, we're very excited to see

37:20

SPEAKER_00: that a number of other solar installers

37:22

SPEAKER_00: and technology developers are also developing the solution.

37:25

SPEAKER_00: In the last year, we've developed a process

37:28

SPEAKER_00: for piloting and evaluating these technology solutions

37:32

SPEAKER_00: so that we can approve them for grid use.

37:34

SPEAKER_00: The meter collars that you're looking at in that picture

37:37

SPEAKER_00: is actually an in-phase meter collar,

37:38

SPEAKER_00: which is now completing, moving through that process

37:42

SPEAKER_00: so that we can continue to support

37:44

SPEAKER_00: as diverse of a number of solar systems

37:46

SPEAKER_00: and installers as possible to continue

37:48

SPEAKER_00: to accelerate the adoption of these systems

37:50

SPEAKER_00: and the proliferation of these decarbonizing technologies.

37:56

SPEAKER_00: We also have a theme centered around AI at SMUD.

38:00

SPEAKER_00: In the last year, we've seen a number of conversations

38:03

SPEAKER_00: around data centers and AI and how it's changing the world.

38:06

SPEAKER_00: It's not just SMUD looking out that we're thinking about AI,

38:09

SPEAKER_00: it's also SMUD looking in and thinking about

38:11

SPEAKER_00: how these AI solutions are changing

38:13

SPEAKER_00: the way that we're operating.

38:15

SPEAKER_00: In this reporting year, we really started to ramp

38:18

SPEAKER_00: into this technology, thinking about how

38:20

SPEAKER_00: large language models can make us more efficient

38:22

SPEAKER_00: at our work, and also looking at how these algorithms

38:25

SPEAKER_00: can help us manage and forecast things

38:27

SPEAKER_00: like outages from storms.

38:28

SPEAKER_00: This is an area that I'm excited to see grow

38:31

SPEAKER_00: in the coming years and one that we are investing heavily in

38:34

SPEAKER_00: from an innovation standpoint.

38:36

SPEAKER_00: We also have a significant amount of work going on

38:38

SPEAKER_00: in our robotics portfolio.

38:39

SPEAKER_00: On the right side here, there's two projects

38:42

SPEAKER_00: that I wanna highlight.

38:43

SPEAKER_00: The first is a visual camera inspection array

38:46

SPEAKER_00: that's installed around battery systems or solar systems.

38:49

SPEAKER_00: This is actually the purple picture that you see

38:51

SPEAKER_00: in the center there, which is really a thermal image.

38:55

SPEAKER_00: And what you're seeing is that camera monitoring

38:57

SPEAKER_00: the thermal profiles of these battery systems,

38:59

SPEAKER_00: taking in information about how hot of a day it is,

39:02

SPEAKER_00: what the normal operating profile for these batteries is.

39:05

SPEAKER_00: And the idea is that it's helping us detect

39:07

SPEAKER_00: any potential early failure modes

39:08

SPEAKER_00: so that we can get early failure notification,

39:11

SPEAKER_00: enact our emergency responses, and detect failures

39:13

SPEAKER_00: before they become catastrophic failures.

39:15

SPEAKER_00: It's a very exciting project.

39:17

SPEAKER_00: Again, part of our research portfolio,

39:19

SPEAKER_00: but if successful, we hope to operationalize more broadly

39:22

SPEAKER_00: across our utility scale investments and larger projects.

39:26

SPEAKER_00: And then in the bottom right here,

39:27

SPEAKER_00: we have a robot inspection pilot,

39:29

SPEAKER_00: which is helping us evaluate the ability of robots

39:33

SPEAKER_00: to take measurements and provide visual inspections,

39:35

SPEAKER_00: potentially in hard to reach areas

39:37

SPEAKER_00: for where humans would otherwise have a difficult time

39:40

SPEAKER_00: providing inspections.

39:43

SPEAKER_00: On the grid innovation side,

39:44

SPEAKER_00: we are continuing to do work on our hydrogen projects.

39:49

SPEAKER_00: Specifically, we're working with EPRI

39:51

SPEAKER_00: on our Department of Energy High Blend grant project.

39:55

SPEAKER_00: This is a $12.4 million project

39:57

SPEAKER_00: that's allowing us to evaluate the impact of hydrogen

39:59

SPEAKER_00: on our pipelines so that we can understand

40:02

SPEAKER_00: what that opportunity is for fuel conversion in the future.

40:05

SPEAKER_00: It's not just what can your thermal power plants do,

40:07

SPEAKER_00: it's also how are you gonna transport that hydrogen?

40:10

SPEAKER_00: What's the impact on the infrastructure?

40:11

SPEAKER_00: What can you reuse and where do you need to invest new?

40:15

SPEAKER_00: And so this is work that's ongoing.

40:17

SPEAKER_00: Unfortunately, with the recent federal changes,

40:19

SPEAKER_00: this grant after this reporting period

40:23

SPEAKER_00: was funded through ARCHES,

40:24

SPEAKER_00: and the ARCHES funding has since been rescinded.

40:28

Unknown: Bottom left here are thermal transition line technologies.

40:32

SPEAKER_00: We have a full portfolio that's developing

40:35

SPEAKER_00: around dynamic line ratings,

40:38

SPEAKER_00: and looking at how we make best use of the infrastructure

40:41

SPEAKER_00: that we have serving the region.

40:43

SPEAKER_00: As we think about electric vehicles

40:44

SPEAKER_00: and other larger intermittent loads of that type,

40:47

SPEAKER_00: we start to see profiles where,

40:50

SPEAKER_00: depending on the time of day,

40:51

SPEAKER_00: we're making very different utilizations of our lines.

40:53

SPEAKER_00: Wind conditions change the way that we utilize

40:57

SPEAKER_00: that infrastructure.

40:58

SPEAKER_00: And so from a research standpoint,

41:00

SPEAKER_00: we're looking at how those line ratings

41:01

SPEAKER_00: are affected by those dynamic conditions,

41:03

SPEAKER_00: and how that may change how we operate the grid

41:05

SPEAKER_00: in the future.

41:07

SPEAKER_00: And then on the right side here,

41:08

SPEAKER_00: I wanna spend a moment highlighting

41:09

SPEAKER_00: some of the carbon farming and ecosystem services

41:12

SPEAKER_00: that we're developing.

41:13

SPEAKER_00: This marks our fourth year

41:15

SPEAKER_00: in studying our pollinator initiatives

41:18

SPEAKER_00: at the Rancho Seiko project.

41:21

SPEAKER_00: And really in this last year,

41:22

SPEAKER_00: we've highlighted an emphasis

41:24

SPEAKER_00: on low maintenance pollinator methods,

41:27

SPEAKER_00: and expanding the footprint beyond

41:29

SPEAKER_00: the simple immediate adjacency

41:31

SPEAKER_00: and under panel locations for the pollinator locations.

41:36

SPEAKER_00: We're targeting achieving

41:37

SPEAKER_00: the Be Better Electric certification at the site,

41:41

SPEAKER_00: which is something that's very, very exciting.

41:43

SPEAKER_00: And we're also investing in things

41:45

SPEAKER_00: like drone seeding programs,

41:46

SPEAKER_00: and understanding how that improves

41:48

SPEAKER_00: the efficiency of seeding,

41:49

SPEAKER_00: the reliability of seeding,

41:51

SPEAKER_00: how we can expand the footprint

41:52

SPEAKER_00: through that more efficient seeding.

41:54

SPEAKER_00: So really technology inspiring nature

41:57

SPEAKER_00: is a very cool concept,

41:58

SPEAKER_00: and one that we're excited to see

42:00

SPEAKER_00: how this can benefit our solar arrays,

42:03

SPEAKER_00: how our learnings can benefit others

42:05

SPEAKER_00: that are making similar investments.

42:06

SPEAKER_00: A very exciting conversation to align,

42:10

SPEAKER_00: really innovation that's going on everywhere

42:12

SPEAKER_00: with a supporting opportunity.

42:15

SPEAKER_02: And James, you said expanded footprint.

42:17

SPEAKER_02: What does that mean?

42:18

SPEAKER_02: How far beyond the panels?

42:20

SPEAKER_00: I think it's a 15 foot radius,

42:22

SPEAKER_00: but it depends on kind of the individual rows

42:25

SPEAKER_00: of the panels and how close they're mounted together.

42:27

SPEAKER_00: We're also looking at the impact

42:29

SPEAKER_00: of the different facing styles of PV panels

42:33

SPEAKER_00: and how that may influence the radius.

42:37

SPEAKER_08: Can you tell us a little bit about

42:38

SPEAKER_08: what you have to do to achieve

42:41

SPEAKER_08: the Be Better Electric certification?

42:44

SPEAKER_00: I would have to follow up with that separately.

42:47

SPEAKER_00: I don't know the specific criteria.

42:53

SPEAKER_00: And then looking at our utility scale energy storage,

42:57

SPEAKER_00: we have our four megawatt lithium battery project.

43:00

SPEAKER_00: This was installed several years ago,

43:01

SPEAKER_00: and so a lot of times we get questions around

43:03

SPEAKER_00: what are we doing with that project?

43:04

SPEAKER_00: Is it still operating?

43:05

SPEAKER_00: Is it still running?

43:07

SPEAKER_00: And I'm excited to say that ever since

43:09

SPEAKER_00: this project was brought online,

43:10

SPEAKER_00: we have continued to utilize it as a supporting resource

43:14

SPEAKER_00: for how we develop battery programs

43:15

SPEAKER_00: and solutions going forward.

43:18

SPEAKER_00: Our research and development engineers

43:19

SPEAKER_00: that actually helped install this very first system

43:23

SPEAKER_00: now collaborate day by day

43:25

SPEAKER_00: with the actual procurement teams

43:26

SPEAKER_00: and our power generation team

43:28

SPEAKER_00: to help set the standards for our large scale

43:30

SPEAKER_00: battery energy storage procurement.

43:31

SPEAKER_00: So the things that we learned here first

43:33

SPEAKER_00: are now incorporated into all of the battery projects

43:35

SPEAKER_00: that we do.

43:37

SPEAKER_00: That includes the best practices on safety standards

43:40

SPEAKER_00: that we've developed for our operators and engineers

43:42

SPEAKER_00: that we utilize at SMUD.

43:43

SPEAKER_00: And right now we are working on programs

43:46

SPEAKER_00: that are investigating black start

43:48

SPEAKER_00: and inverter based resources

43:50

SPEAKER_00: so that these batteries can contribute directly

43:52

SPEAKER_00: to grid reliability side by side

43:54

SPEAKER_00: with conventional generation resources.

43:57

SPEAKER_00: On the right side here,

43:58

SPEAKER_00: our long duration energy storage system.

44:01

SPEAKER_00: The ESS flow battery pilot this last year

44:04

SPEAKER_00: has come to a conclusion.

44:06

SPEAKER_00: ESS as an organization is actually undergoing

44:09

SPEAKER_00: some organizational restructuring.

44:11

SPEAKER_00: As part of that effort, they've made the decision

44:13

SPEAKER_00: to shift their focus to their next generation product.

44:16

SPEAKER_00: And so the energy warehouses that are cited at our location

44:20

SPEAKER_00: are no longer their priority focus.

44:22

SPEAKER_00: As a result, the decision was made to conclude the pilot

44:25

SPEAKER_00: and monitor their next generation technology.

44:28

SPEAKER_00: We remain actively engaged with ESS

44:30

SPEAKER_00: and we're incorporating that information

44:32

SPEAKER_00: so that we can continue to evaluate

44:34

SPEAKER_00: long duration energy storage

44:35

SPEAKER_00: as part of our long range integrated resource planning.

44:38

SPEAKER_00: And so that's something that we're actively doing.

44:41

SPEAKER_00: But the pilot itself, which was six containers,

44:44

SPEAKER_00: 350 kilowatts of long duration energy storage

44:47

SPEAKER_00: has concluded in this year.

44:52

SPEAKER_00: And in conclusion, I'd like to request

44:55

SPEAKER_00: that the board move to,

44:57

SPEAKER_00: that the board put on the consent agenda

44:59

SPEAKER_00: to accept the SD10 monitoring report.

45:03

SPEAKER_02: Thank you James.

45:03

SPEAKER_02: I'm always excited to hear about the innovations

45:05

SPEAKER_02: and all the things you're working on.

45:07

SPEAKER_02: And a lot of them are just very practical things

45:09

SPEAKER_02: for keeping this grid working and as clean as possible.

45:13

SPEAKER_02: Did you have any questions or thoughts?

45:15

SPEAKER_02: I just wanted to say thank you to you and the team.

45:20

SPEAKER_08: SMUD really prides itself on innovation.

45:24

SPEAKER_08: And it always has.

45:26

SPEAKER_08: And so it's good to see us

45:30

SPEAKER_08: taking on some things that we haven't before.

45:34

SPEAKER_08: And I just wanna say,

45:36

SPEAKER_08: the pollinator stuff is really important to me

45:40

SPEAKER_08: because it's so simple

45:42

SPEAKER_08: and you can engage others to do it too.

45:45

SPEAKER_08: So you guys are on the right track and good work.

45:51

Unknown: Thank you.

45:53

SPEAKER_02: Unless I hear or see anybody else on the phone, the remote.

45:57

SPEAKER_02: Are there any comments online?

46:01

SPEAKER_02: Yes, we do.

46:02

SPEAKER_02: From John.

46:04

SPEAKER_02: John, you wanna go ahead?

46:06

SPEAKER_04: Hello, this is John Weber.

46:07

SPEAKER_04: Can you hear me?

46:08

SPEAKER_02: We can, go right ahead.

46:10

SPEAKER_04: Yes, good evening, chair and board.

46:13

SPEAKER_04: Thank you for the presentation staff.

46:15

SPEAKER_04: I support the vehicle to grid solutions.

46:18

SPEAKER_04: We have approximately five gigawatt hours of storage

46:22

SPEAKER_04: in EVs within our service territory.

46:26

SPEAKER_04: A year from now, there will be even more bi-directional

46:29

SPEAKER_04: vehicle to grid chargers available.

46:32

SPEAKER_04: It would be nice to see some type of incentives

46:36

SPEAKER_04: for these bi-directional chargers

46:39

SPEAKER_04: in the 2027 calendar year.

46:42

SPEAKER_04: Thank you for your time and have a good evening.

46:44

SPEAKER_02: Thank you, John.

46:45

SPEAKER_02: James was frantically nodding,

46:48

SPEAKER_02: so I'm gonna let him say if there's something,

46:50

SPEAKER_02: you wanna speak to that?

46:51

SPEAKER_00: That's absolutely exciting.

46:54

SPEAKER_00: I would just comment that we like to think about

46:56

SPEAKER_00: these batteries in vehicles.

46:58

SPEAKER_00: Similarly, we think about the stationary batteries.

47:00

SPEAKER_00: They create value.

47:01

SPEAKER_00: We have programs that pay those stationary batteries

47:04

SPEAKER_00: for that grid benefit.

47:06

SPEAKER_00: And we'd like to see all of these types of energy storage

47:11

SPEAKER_00: move in that direction.

47:12

SPEAKER_00: So, a very exciting topic.

47:14

SPEAKER_02: Yeah, and for me, I mean,

47:16

SPEAKER_02: knowing that we are in a deficit of critical minerals,

47:19

SPEAKER_02: earth minerals in this country,

47:21

SPEAKER_02: in order for national security

47:22

SPEAKER_02: and to continue to make these batteries at home,

47:26

SPEAKER_02: we're gonna have to recycle them too.

47:28

SPEAKER_02: And we have to maximize use of what we've already got.

47:30

SPEAKER_02: So, thank you, John.

47:33

SPEAKER_02: Are there any other comments?

47:35

SPEAKER_02: I do not see any.

47:36

SPEAKER_02: Okay, and I don't see any here in the room.

47:39

SPEAKER_02: So then we will go ahead

47:40

SPEAKER_02: and put that on the consent calendar.

47:43

SPEAKER_02: Thank you so much, James, for that.

47:46

Unknown: And we'll move on to agenda item number three,

47:47

SPEAKER_02: which is to discuss the monitoring report

47:50

SPEAKER_02: for strategic direction 19, diversified business,

47:55

SPEAKER_02: and presenting that is also James, welcome back.

47:59

Unknown: I didn't change my coat, but I should have.

48:01

SPEAKER_00: Thank you.

48:02

Unknown: So, I always enjoy presenting SD19 directly after SD10,

48:10

SPEAKER_00: because it's our innovation and it's our forward thinking

48:14

SPEAKER_00: and it's our leadership in the industry

48:17

SPEAKER_00: that really gives us the opportunity to invest

48:19

SPEAKER_00: in things like SD19 and diversified business.

48:22

SPEAKER_00: The way that we are able to look at capitalizing

48:25

SPEAKER_00: on intellectual property, in order to have a patent,

48:29

SPEAKER_00: in order to have intellectual property,

48:30

SPEAKER_00: you need to be a first mover.

48:31

SPEAKER_00: You need to be an early investor.

48:33

SPEAKER_00: You need to be an innovator.

48:34

SPEAKER_00: And so, this strategic directive really builds on

48:38

SPEAKER_00: what is at the core of that innovation culture

48:41

SPEAKER_00: that we just had the opportunity to talk about

48:43

SPEAKER_00: and we heard so much excitement around.

48:46

SPEAKER_00: Again, in the same way that innovation is centered

48:49

SPEAKER_00: around our zero carbon plan,

48:51

SPEAKER_00: new business development is absolutely critical

48:55

SPEAKER_00: to how we achieve our long-term goals.

48:57

SPEAKER_00: It is the new technology and business models

49:00

SPEAKER_00: and how we enable those.

49:01

SPEAKER_00: It is also the way that we pursue grants and partnerships

49:04

SPEAKER_00: so that we can ensure affordability on this journey.

49:08

SPEAKER_00: When we think about our approach to SD19,

49:11

SPEAKER_00: we look at it in terms of revenue services,

49:13

SPEAKER_00: technology partnerships, and grants and external funding.

49:17

SPEAKER_00: From the grant side, as I jump into this slide,

49:20

SPEAKER_00: I do want to highlight that we've had some recent changes

49:24

SPEAKER_00: to the grant projects with recent news

49:28

SPEAKER_00: from the Department of Energy.

49:30

SPEAKER_00: The numbers that you're looking at here

49:32

SPEAKER_00: were developed prior to any news

49:35

SPEAKER_00: that's happened in the last week.

49:37

SPEAKER_00: In the previous reporting period,

49:39

SPEAKER_00: you'll see the grant portfolio

49:40

SPEAKER_00: that we are working on delivering

49:42

SPEAKER_00: is around $238 million worth of projects

49:46

SPEAKER_00: that are enabled by grants.

49:48

SPEAKER_00: Of that $92 million, nearly $93 million

49:52

SPEAKER_00: are awards coming from grants.

49:54

SPEAKER_00: The other $145 million is project investment

49:57

SPEAKER_00: and development investment from SMUD

49:59

SPEAKER_00: to enable these solutions.

50:01

SPEAKER_00: Some highlights from this particular reporting year

50:03

SPEAKER_00: is the CERI grant, which stands for

50:05

SPEAKER_00: California Energy Reliability

50:07

SPEAKER_00: and Resilient Infrastructure Grant.

50:10

SPEAKER_00: This grant was won in 2024,

50:11

SPEAKER_00: and it includes investment into the downtown grid,

50:14

SPEAKER_00: switch gear, cabling, and infrastructure upgrades

50:18

SPEAKER_00: to help modernize that technology

50:21

SPEAKER_00: in a way that lets it integrate

50:22

SPEAKER_00: with the distributed energy resource investments

50:24

SPEAKER_00: that we're making, and helps us manage that

50:27

SPEAKER_00: as part of our portfolio of resources

50:30

SPEAKER_00: using really the leading edge technology

50:33

SPEAKER_00: that we're investing in.

50:34

SPEAKER_00: That grant itself is worth $23 million.

50:39

SPEAKER_00: Jumping down, we have the CFI grant,

50:42

SPEAKER_00: Clean Fuel Infrastructure Grant,

50:44

SPEAKER_00: that was also awarded in the 2024 period.

50:47

SPEAKER_00: This grant is to fund 90 new charge stations,

50:52

SPEAKER_00: including some stations that were in garages

50:55

SPEAKER_00: and undercover, that is 90 charge handles,

51:00

SPEAKER_00: level two and DC fast charge handles,

51:02

SPEAKER_00: that would have been spread out across about 15 sites.

51:05

SPEAKER_00: This project was awarded in 2024,

51:08

SPEAKER_00: planning began in 2025.

51:10

SPEAKER_00: Unfortunately, this project has been removed

51:12

SPEAKER_00: from federal funding as of 2025.

51:14

SPEAKER_02: Meaning we got notice we're not gonna get the money.

51:16

SPEAKER_00: Correct.

51:18

SPEAKER_00: So we still have the sites identified,

51:20

SPEAKER_00: they still infill critical locations,

51:22

SPEAKER_00: and we are continuing to pursue

51:24

SPEAKER_00: alternative grant funding opportunities,

51:27

SPEAKER_00: but this particular funding opportunity

51:29

SPEAKER_00: did not come to fruition.

51:31

SPEAKER_00: And then at the bottom here,

51:32

SPEAKER_00: we have our extreme heat and resiliency grant.

51:35

SPEAKER_00: This is a grant that was awarded in partnership

51:38

SPEAKER_00: with the Sacramento Unified School District,

51:41

SPEAKER_00: and it is a planning grant for a community microgrid

51:44

SPEAKER_00: and resiliency hub at the Hiram Johnson School.

51:47

SPEAKER_00: This is allowing us to do the engineering work,

51:49

SPEAKER_00: the engineering study,

51:51

SPEAKER_00: understand the costs associated with this,

51:53

SPEAKER_00: and giving us a potential highest confidence path forward

51:56

SPEAKER_00: for a future project at this location.

52:00

Unknown: So James, of these three projects,

52:07

SPEAKER_08: it's like 238 million,

52:09

SPEAKER_08: but what's been pulled back by the federal government?

52:13

SPEAKER_00: So of these projects, the CFI grant has been pulled back,

52:18

SPEAKER_00: and the more recent grant that we have implicated

52:21

SPEAKER_00: is potentially our GRIP grant.

52:23

SPEAKER_00: We're talking about on the order of potentially

52:27

SPEAKER_00: 60 million dollars worth of grant funds

52:28

SPEAKER_00: that are at least implicated in the current conversation.

52:32

SPEAKER_00: We don't have final information on all of this,

52:35

SPEAKER_00: and this is an active conversation,

52:36

SPEAKER_00: so there's a lot more that needs to happen

52:39

SPEAKER_00: before we have final answers there.

52:41

Unknown: Thank you.

52:42

SPEAKER_00: I will call out, especially on some of these critical grants,

52:46

SPEAKER_00: is that with our grant effort,

52:48

SPEAKER_00: we really prioritize identifying those projects

52:51

SPEAKER_00: that need to get done for us to achieve our 2030 goal.

52:54

SPEAKER_00: We're not looking at grants as an opportunity to go out

52:56

SPEAKER_00: and try and do this thing

52:58

SPEAKER_00: that we wouldn't have otherwise done.

52:59

SPEAKER_00: We really are laser focused on those end goals.

53:01

SPEAKER_00: So when we receive this grant funding,

53:03

SPEAKER_00: it's a tool that lets us accelerate towards that finish line,

53:06

SPEAKER_00: that lets us do it faster,

53:08

SPEAKER_00: lets us do it more efficiently.

53:11

SPEAKER_00: Having these grants is a tool

53:13

SPEAKER_00: to help us move down that path more quickly.

53:17

SPEAKER_00: It does not prevent us from moving down that path

53:20

SPEAKER_00: towards our goals.

53:25

SPEAKER_00: Jumping into technology and industry partners,

53:28

SPEAKER_00: I've got two slides here on this particular topic.

53:30

SPEAKER_00: On the first slide, I want to touch on our partnerships

53:34

SPEAKER_00: with AspenTech, Uplight, and SEW.

53:36

SPEAKER_00: AspenTech is our DERMS developer.

53:39

SPEAKER_00: We've actually had a chance to talk about them

53:41

SPEAKER_00: in quite a few projects on the previous slides.

53:44

SPEAKER_00: You can see how they're very integrated with our innovation.

53:48

SPEAKER_00: Through this partnership, one of the opportunities

53:51

SPEAKER_00: that we have as a leader is

53:53

SPEAKER_00: because we are developing these solutions first.

53:55

SPEAKER_00: Other utilities are looking to us.

53:57

SPEAKER_00: They're wanting to understand how well the solution works,

54:00

SPEAKER_00: how much value it created.

54:02

SPEAKER_00: They're asking questions, can we see your data?

54:05

SPEAKER_00: Can we understand the value?

54:07

SPEAKER_00: We are very clear that where we are creating value,

54:10

SPEAKER_00: we would like to see that benefit be returned

54:13

SPEAKER_00: to our customers who helped enable that value.

54:17

SPEAKER_00: This partnership allows us to do that.

54:19

SPEAKER_00: Where other utilities adopt this technology,

54:22

SPEAKER_00: we actually have a return on that investment

54:25

SPEAKER_00: and are able to monetize the intellectual property

54:27

SPEAKER_00: that was developed in that way.

54:29

SPEAKER_00: There's a follow-on benefit.

54:31

SPEAKER_00: Because we have very unique needs

54:33

SPEAKER_00: to achieve our very aggressive goals,

54:36

SPEAKER_00: we're able to work with these partnerships

54:38

SPEAKER_00: and these partners to make sure that the technologies

54:41

SPEAKER_00: and solutions that we need

54:42

SPEAKER_00: are at the top of their priority list.

54:44

SPEAKER_00: If we're looking at managing a high volume

54:47

SPEAKER_00: of distributed energy resources

54:48

SPEAKER_00: and that's the most important thing for us,

54:51

SPEAKER_00: we can work with these partners to make sure

54:52

SPEAKER_00: that that's the most important thing for them.

54:55

SPEAKER_00: So it's not just getting that return on investment.

54:57

SPEAKER_00: It's doing everything that we can

54:58

SPEAKER_00: to continue to accelerate the timeline

55:00

SPEAKER_00: without taking on additional costs

55:02

SPEAKER_00: to provide that acceleration.

55:05

Unknown: With Uplight, this now marks the second year

55:08

SPEAKER_00: where we've continued to see a proliferation of technologies

55:12

SPEAKER_00: on the SMUD Energy Store.

55:14

SPEAKER_00: And when devices and technology are purchased

55:17

SPEAKER_00: from the SMUD Energy Store,

55:18

SPEAKER_00: a portion of that spending comes back to SMUD

55:21

SPEAKER_00: and enables us to continue to reinvest

55:22

SPEAKER_00: in these innovative projects and solutions.

55:25

SPEAKER_00: Now when you log on to the website,

55:27

SPEAKER_00: you'll actually see sales.

55:29

SPEAKER_00: You'll see discounts related directly to rebates.

55:32

SPEAKER_00: You'll see an easy path to enrollment into our programs,

55:35

SPEAKER_00: really making it as simple as possible

55:37

SPEAKER_00: for customers to be part of the energy transition

55:40

SPEAKER_00: and really living up to what it means

55:42

SPEAKER_00: when you sign up to join the charge.

55:46

SPEAKER_00: SEW is our software and application

55:50

SPEAKER_00: platform development partner,

55:51

SPEAKER_00: helping us develop things like our commercial customer portal

55:55

SPEAKER_00: and also more recently working with us on the development

55:57

SPEAKER_00: of our electric vehicle charging app.

56:00

SPEAKER_00: Similar to the relationship with SEW,

56:02

SPEAKER_00: we're developing leading technology in this space.

56:05

SPEAKER_00: And as other utilities are adopting that technology,

56:08

SPEAKER_00: there's a benefit that comes back to SMUD

56:10

SPEAKER_00: and we're making sure that the priorities

56:12

SPEAKER_00: that they're developing are the ones

56:13

SPEAKER_00: that align with our local needs.

56:16

SPEAKER_00: Jumping down to the next slide here,

56:18

SPEAKER_00: we talked a little bit about ESS already.

56:21

SPEAKER_00: So I want to touch again on the fact that throughout 2024,

56:26

SPEAKER_00: we did do full testing and operational qualification

56:31

SPEAKER_00: of the six energy warehouse systems.

56:33

SPEAKER_00: Again, that project and pilot has since concluded

56:37

SPEAKER_00: and the flow batteries have now been removed

56:40

SPEAKER_00: from that site.

56:42

SPEAKER_00: And then the last partnership here that I want to touch on

56:45

SPEAKER_00: is our partnership with Itron.

56:46

SPEAKER_00: Itron is the technology partner on our grip grant.

56:50

SPEAKER_00: We're deploying approximately 200 grid edge

56:53

SPEAKER_00: smart metering devices, upgrading meters for customers,

56:58

SPEAKER_00: that it gives us higher visibility

57:00

SPEAKER_00: and a more deep integration

57:02

SPEAKER_00: with the distributed energy resources,

57:04

SPEAKER_00: the ability to integrate with batteries,

57:07

SPEAKER_00: the ability to operate and control and interface

57:10

SPEAKER_00: with electric vehicles for managed charging,

57:12

SPEAKER_00: and really to do that compute

57:14

SPEAKER_00: and to have that computational power

57:16

SPEAKER_00: at the edge of the grid,

57:17

SPEAKER_00: rather than all of that information

57:19

SPEAKER_00: from those thousands and thousands of endpoints

57:21

SPEAKER_00: trying to travel back to a central point,

57:23

SPEAKER_00: making local decisions,

57:24

SPEAKER_00: and then moving that communication back out,

57:27

SPEAKER_00: using that grid edge technology

57:29

SPEAKER_00: to enhance the speed of decision making

57:31

SPEAKER_00: and the quality of decision making with higher visibility

57:34

SPEAKER_00: and really being an industry leader in that space.

57:37

SPEAKER_00: Our relationship with Itron is similar to that of SEW

57:40

SPEAKER_00: and Aspen Tech,

57:41

SPEAKER_00: where we have that co-development opportunity

57:44

SPEAKER_00: and that joint sales benefit

57:45

SPEAKER_00: when other utilities adopt the same technologies

57:47

SPEAKER_00: that SMUD supported the development of.

57:50

Unknown: We also, kind of moving,

57:54

SPEAKER_00: we first talked about grants,

57:55

SPEAKER_00: we then talked about partners,

57:56

SPEAKER_00: moving to the service provider side of the conversation.

57:59

SPEAKER_00: We've now entered into our seventh year of operation

58:02

SPEAKER_00: as a community choice aggregator service provider.

58:05

SPEAKER_00: Our community energy services team

58:07

SPEAKER_00: is now serving seven of the state's 25 CCAs.

58:11

SPEAKER_00: That represents 2.7 million additional meters

58:15

SPEAKER_00: that we are providing service to,

58:16

SPEAKER_00: and that includes 11 major service offerings.

58:20

SPEAKER_00: Things like EV detection, things like debt collection,

58:22

SPEAKER_00: things like billing, we provide to those CCA clients.

58:26

SPEAKER_00: And as we continue to look ahead,

58:28

SPEAKER_00: we are looking forward to opportunities

58:31

SPEAKER_00: to continue to expand the value of the intellectual property

58:33

SPEAKER_00: that we've developed in this space.

58:37

SPEAKER_00: Additionally, wanna take a look at the work

58:40

SPEAKER_00: that CalEpic has been doing.

58:43

SPEAKER_00: In past years, this has been presented on

58:45

SPEAKER_00: under the name California Mobility Center.

58:49

SPEAKER_00: This last year, they've rebranded to CalEpic,

58:52

SPEAKER_00: the California Energy Power and Innovation Collaborative.

58:56

SPEAKER_00: Their work is significantly more focused on technology,

58:59

SPEAKER_00: energy power, batteries, and the energy ecosystem

59:03

SPEAKER_00: than just electric vehicles and mobility.

59:05

SPEAKER_00: And so the rebranding really helps communicate

59:09

SPEAKER_00: that broader scope that they're trying to take on.

59:12

SPEAKER_00: A significant amount of their impact

59:15

SPEAKER_00: is centered around their workforce development

59:16

SPEAKER_00: and career development initiatives.

59:18

SPEAKER_00: They've now trained over 700 individuals

59:21

SPEAKER_00: through their workforce development program.

59:23

SPEAKER_00: About 10% of those have been directly placed

59:26

SPEAKER_00: into full-time careers, living wage careers,

59:29

SPEAKER_00: permanent careers, job advancement careers.

59:32

SPEAKER_00: This also provides inroads with high school level training

59:35

SPEAKER_00: to help individual students make the decision

59:38

SPEAKER_00: between things like trade school or community college

59:40

SPEAKER_00: or going to full university

59:42

SPEAKER_00: and pursuing an engineering degree

59:43

SPEAKER_00: to exist as an engineer in this energy space

59:47

SPEAKER_00: and this exciting new area of technology.

59:51

SPEAKER_00: And also working with individuals who may be in positions

59:54

SPEAKER_00: where upscaling is necessary for them to continue

59:56

SPEAKER_00: to develop in their role.

59:58

SPEAKER_00: So really being a centerpiece

1:00:00

SPEAKER_00: for that type of workforce development and training.

1:00:03

SPEAKER_00: They are providing and helping deliver

1:00:06

SPEAKER_00: the Rivian Technical Trades Program,

1:00:08

SPEAKER_00: which is a program run by Rivian out of their facility.

1:00:12

SPEAKER_00: It is a 15 week paid internship program

1:00:15

SPEAKER_00: that Rivian uses to train their technicians.

1:00:18

SPEAKER_00: They train here in Sacramento and Rivian then deploys those

1:00:21

SPEAKER_00: across the Western United States to all of their locations.

1:00:24

SPEAKER_00: So they've become a hub for that level

1:00:25

SPEAKER_00: of job creation and training.

1:00:27

SPEAKER_00: Very exciting work and opportunities.

1:00:29

SPEAKER_00: And it's reflected in the grant success

1:00:31

SPEAKER_00: that they've had more recently.

1:00:32

SPEAKER_00: In the last year, they've achieved $5.3 million

1:00:36

SPEAKER_00: in grant funding.

1:00:37

SPEAKER_00: Most recently, $4 million

1:00:39

SPEAKER_00: from the California Energy Commission

1:00:40

SPEAKER_00: to become the preferred EVSE testing partner

1:00:45

SPEAKER_00: in qualification so that they can help test the standards

1:00:48

SPEAKER_00: for EV chargers for the state of California.

1:00:52

SPEAKER_00: And additionally, reflective of the good work

1:00:55

SPEAKER_00: that they're doing on workforce development,

1:00:57

SPEAKER_00: you'll see significant investment from local foundations

1:00:59

SPEAKER_00: and funding to support the workforce development

1:01:02

SPEAKER_00: and training that they're doing.

1:01:03

SPEAKER_00: An area that we're very, very excited about.

1:01:06

SPEAKER_00: In summary, that three year look back

1:01:08

SPEAKER_00: and the combination of those portfolios,

1:01:11

SPEAKER_00: we've had a gross revenue of about $16 million

1:01:15

SPEAKER_00: with about $14 million of expense.

1:01:18

SPEAKER_00: We've netted revenue of $2.7 million profit

1:01:22

SPEAKER_00: that helps contribute to advancing

1:01:24

SPEAKER_00: and accelerating our zero carbon objectives.

1:01:27

SPEAKER_00: When we roll that into a three year look back summary,

1:01:30

SPEAKER_00: those revenues and expenses translate into $8 million

1:01:34

SPEAKER_00: of revenue from our technology

1:01:36

SPEAKER_00: and new business development initiatives.

1:01:40

SPEAKER_00: In conclusion, I request that the board put on

1:01:43

SPEAKER_00: to the consent calendar acceptance

1:01:45

SPEAKER_00: of the SD19 monitoring report.

1:01:48

SPEAKER_02: Thank you so much James.

1:01:49

SPEAKER_02: You pack a lot into a presentation

1:01:51

SPEAKER_02: and I'm always so impressed.

1:01:55

SPEAKER_02: I do wanna say that a couple things

1:01:56

SPEAKER_02: that I find really exciting is,

1:01:58

SPEAKER_02: and make sure the public understands this too,

1:02:00

SPEAKER_02: that the money, we have a, there was a law passed actually

1:02:04

SPEAKER_02: so that SMUD could benefit from the partnerships

1:02:07

SPEAKER_02: with innovators just like a business

1:02:10

SPEAKER_02: so that we can actually keep our rates low.

1:02:12

SPEAKER_02: So when we use rate payer data or we give information

1:02:16

SPEAKER_02: and we're working back and forth with a new company

1:02:19

SPEAKER_02: in research, we can actually benefit financially from that

1:02:23

SPEAKER_02: which means we can keep our rates lower

1:02:25

SPEAKER_02: and we can spend that money innovating more.

1:02:28

SPEAKER_02: So we're very lucky to be able to do it

1:02:30

SPEAKER_02: and you're doing a great job

1:02:31

SPEAKER_02: if we're ending up $8 million positive

1:02:33

SPEAKER_02: over the last few years, that's amazing.

1:02:35

SPEAKER_02: And then CalEpic, it's really nice to hear

1:02:37

SPEAKER_02: that they're doing well and I like the rebranded name.

1:02:41

SPEAKER_02: Mobility Center, I wasn't quite sure what that meant.

1:02:43

SPEAKER_02: So CalEpic, it's great.

1:02:45

SPEAKER_08: I'm not sure, I know what that is but okay.

1:02:48

SPEAKER_08: Well the name, it's an acronym, yeah.

1:02:51

SPEAKER_02: So I really do like it.

1:02:53

SPEAKER_02: Anyway, I'll go ahead and turn it over to Director Herbert.

1:02:57

SPEAKER_08: I just wanted to say, I don't like the CalEpic name

1:03:02

SPEAKER_08: but nobody asked me when they named these places,

1:03:06

SPEAKER_08: even Mosak, I wanted you to name something else

1:03:09

SPEAKER_08: but that turned out pretty good.

1:03:12

SPEAKER_08: I just wanna say, I'm so glad that we're continuing

1:03:18

SPEAKER_08: to look at ways to do other things.

1:03:22

SPEAKER_08: Money is gonna dry up in the next four years

1:03:26

SPEAKER_08: for a lot of the more innovative things

1:03:31

SPEAKER_08: that we wanted to do but we're gonna have to get smarter

1:03:36

SPEAKER_08: and do things differently and I feel a lot of confidence

1:03:42

SPEAKER_08: in your team in looking for those solutions.

1:03:46

SPEAKER_08: So thank you.

1:03:50

SPEAKER_02: Any other comments from board members?

1:03:53

SPEAKER_02: Okay and I will say, I just found out

1:03:55

SPEAKER_02: about a new company today that I am about ready

1:03:57

SPEAKER_02: to send through the board office

1:03:59

SPEAKER_02: on green hydrogen development in ways

1:04:01

SPEAKER_02: that are way more environmentally friendly

1:04:03

SPEAKER_02: so I will be passing that along.

1:04:06

SPEAKER_02: Thank you so much for the presentation.

1:04:07

SPEAKER_02: This will go on the consent calendar.

1:04:11

SPEAKER_02: Oh sorry, public comment.

1:04:13

SPEAKER_02: Are there any public comments?

1:04:15

SPEAKER_02: Online?

1:04:16

SPEAKER_02: I don't see anybody in the room?

1:04:17

SPEAKER_02: Yeah, I don't see any hands.

1:04:19

SPEAKER_12: Just giving it a second, so no.

1:04:21

SPEAKER_02: Sorry, I think we're done, thank you.

1:04:24

SPEAKER_02: No, I appreciate that, okay.

1:04:26

SPEAKER_02: So we'll go ahead now and move on to agenda item four

1:04:29

SPEAKER_02: which is the board monitoring of governance process eight,

1:04:32

Unknown: board committee principles, GP 10

1:04:36

SPEAKER_02: which is the board training orientation

1:04:38

SPEAKER_02: and GP 15 which is board travel and training reimbursement.

1:04:44

SPEAKER_02: And I believe we've scored, I think,

1:04:48

SPEAKER_02: I find, so this was a comment made by a board member.

1:04:50

SPEAKER_02: I find that ad hoc board committees are discouraged

1:04:53

SPEAKER_02: by staff.

1:04:55

SPEAKER_02: Is there, are there any board members online or present

1:04:58

SPEAKER_02: that wish to discuss that?

1:05:01

SPEAKER_08: Well I just wanna say that there's really only two of us here

1:05:05

SPEAKER_08: and what I do when I listen,

1:05:10

SPEAKER_08: when I look at that, actually there's three

1:05:12

SPEAKER_08: because director Bowie Thompson is online.

1:05:16

SPEAKER_08: I do find that ad hoc board committees are discouraged.

1:05:21

SPEAKER_08: I'm not saying that I want us to necessarily

1:05:25

SPEAKER_08: do anything differently.

1:05:28

SPEAKER_08: When I've talked to Paul about different ad hoc committees

1:05:31

SPEAKER_08: that I'd like to see, he pretty much talks me out of it.

1:05:36

SPEAKER_08: So that's just my opinion.

1:05:39

SPEAKER_08: That's all I don't really expect anybody to do anything.

1:05:43

SPEAKER_02: Okay.

1:05:45

SPEAKER_02: Then we will just go ahead and move on

1:05:47

SPEAKER_02: and the compliance scores are high on the principles

1:05:53

SPEAKER_02: and this I assume is the same comment from you

1:05:56

SPEAKER_02: on this one too.

1:05:57

SPEAKER_02: So nothing to do with it, just noting.

1:06:00

SPEAKER_02: Okay, so we go ahead and move on.

1:06:03

SPEAKER_02: I don't think there are any other,

1:06:04

SPEAKER_02: the compliance is high on this one

1:06:07

SPEAKER_02: and again we're not gonna read all of this

1:06:09

SPEAKER_02: if everybody on the board agrees it was fine

1:06:12

SPEAKER_02: and we're in compliance.

1:06:14

SPEAKER_02: So I think that was it.

1:06:17

SPEAKER_02: Yeah, seven.

1:06:18

SPEAKER_02: So are there any public comments

1:06:22

SPEAKER_02: on these strategic directives?

1:06:28

Unknown: They would have had to have read the slides.

1:06:30

SPEAKER_02: There is not.

1:06:31

SPEAKER_12: There's no comments.

1:06:32

SPEAKER_12: Okay, so I think with that we will go ahead

1:06:36

SPEAKER_02: and close that item four if we have no public comments

1:06:40

Unknown: and move on to the board work plan

1:06:44

SPEAKER_02: and that is simply going through where we are with the,

1:06:49

SPEAKER_02: I can't believe it, we're in the last quarter of the year,

1:06:51

Unknown: moving pretty quickly.

1:06:53

SPEAKER_02: We've got some nuclear update coming up,

1:06:56

SPEAKER_02: EV charging strategy is gonna be on November 11th,

1:07:00

SPEAKER_02: election of officers coming up for next year on November 12th

1:07:05

SPEAKER_02: and then just our last three board meetings in December

1:07:08

SPEAKER_02: which are important because we've got the natural solutions

1:07:11

SPEAKER_02: and carbon offsets and the budget discussion.

1:07:14

SPEAKER_02: The big, that's the big one.

1:07:16

SPEAKER_02: So, and in the parking lot we have the need

1:07:21

SPEAKER_02: for local generation for liability purposes.

1:07:25

SPEAKER_02: That's something hopefully we'll see in the future

1:07:27

SPEAKER_02: and then memos, challenges and opportunities

1:07:31

SPEAKER_02: with interconnecting large loads.

1:07:33

SPEAKER_02: I think that's a memo that's coming.

1:07:35

SPEAKER_02: So we can look for that.

1:07:37

SPEAKER_02: I know that's really close to coming

1:07:38

SPEAKER_12: because I've seen a draft of it.

1:07:40

SPEAKER_12: So very, very soon you should receive that.

1:07:42

SPEAKER_02: Thank you.

1:07:44

SPEAKER_02: Are there any other board member comments on the work plan

1:07:49

SPEAKER_02: or any public comments?

1:07:52

SPEAKER_12: No public comments.

1:07:53

SPEAKER_02: Okay, and we will close out the work plan

1:07:57

SPEAKER_02: and we will move now to public comment

1:08:03

SPEAKER_02: for items that are not on the agenda

1:08:04

SPEAKER_02: and we have several people from the public here today

1:08:08

SPEAKER_02: that have given their cards.

1:08:10

SPEAKER_02: Thank you for sitting through the meeting.

1:08:12

SPEAKER_02: I hope you found it informational.

1:08:15

SPEAKER_02: We're glad you're here and again,

1:08:17

SPEAKER_02: when people come to speak to us,

1:08:19

SPEAKER_02: we're always glad to hear you.

1:08:20

SPEAKER_02: We'll give you three minutes each

1:08:22

SPEAKER_02: and we cannot go back and forth on items

1:08:24

SPEAKER_02: that are not on the agenda.

1:08:26

SPEAKER_02: So, but we do appreciate the input and having you here.

1:08:29

SPEAKER_02: So I think Pat Ferris is first from Third Act Sacramento.

1:08:36

Unknown: Can I go up here?

1:08:38

SPEAKER_08: Yes.

1:08:38

SPEAKER_08: The third one.

1:08:39

SPEAKER_08: Yes.

1:08:41

SPEAKER_01: Thank you.

1:08:43

SPEAKER_01: Pat Ferris, long time resident of Sacramento,

1:08:47

SPEAKER_01: founding member of Third Act Sacramento,

1:08:51

SPEAKER_01: concentrating on climate and democracy.

1:08:55

SPEAKER_01: And we're here tonight,

1:08:57

SPEAKER_01: especially to ask the policy committee

1:09:01

SPEAKER_01: to recommend to the full board

1:09:03

SPEAKER_01: that they endorse the polluters pay super fund bill,

1:09:08

SPEAKER_01: which is going through both houses

1:09:10

SPEAKER_01: of the legislature right now.

1:09:13

SPEAKER_01: I wanna describe very briefly

1:09:15

SPEAKER_01: what the benefits to the community would be

1:09:18

SPEAKER_01: and the benefits to SMUD

1:09:21

SPEAKER_01: as you're here to benefit the community.

1:09:24

SPEAKER_01: The polluters pay climate super fund act

1:09:27

SPEAKER_01: will assess compensatory fees

1:09:30

SPEAKER_01: on the world's largest fossil fuel polluters,

1:09:34

SPEAKER_01: climate polluters,

1:09:36

SPEAKER_01: to remedy the damage their emissions have caused the state.

1:09:41

SPEAKER_01: A climate super fund provides revenue

1:09:44

SPEAKER_01: to recover from, build resilience against,

1:09:49

SPEAKER_01: adapt to and mitigate climate damage.

1:09:54

SPEAKER_01: In an atmosphere where federal dollars

1:09:57

SPEAKER_01: are not as forthcoming as we imagine,

1:10:01

SPEAKER_01: and where city and county budgets are really impacted,

1:10:06

SPEAKER_01: and when we need more climate resilience

1:10:10

SPEAKER_01: and more climate investment,

1:10:14

SPEAKER_01: the super fund bill, if passed,

1:10:17

SPEAKER_01: would provide a new revenue source dearly needed.

1:10:22

SPEAKER_01: Some of the benefits to the community would be

1:10:25

SPEAKER_01: funding disaster recovery and response,

1:10:29

SPEAKER_01: energy efficiency and resiliency,

1:10:32

SPEAKER_01: decarbonization, does that sound familiar,

1:10:36

SPEAKER_01: community resilience and support for essential workers.

1:10:41

SPEAKER_01: These investments can help save utility costs

1:10:45

SPEAKER_01: for California families, schools and local governments

1:10:49

SPEAKER_01: and insulate state and local budgets

1:10:52

SPEAKER_01: against escalating climate disasters.

1:10:57

SPEAKER_01: With this fund, we can invest in California's future,

1:11:01

SPEAKER_01: respond to climate catastrophes,

1:11:04

SPEAKER_01: build climate resilient neighborhoods

1:11:07

SPEAKER_01: and sustainable infrastructure with efficiencies

1:11:11

SPEAKER_01: for greater affordability.

1:11:13

SPEAKER_01: We can spur economic growth with thousands of good jobs

1:11:17

SPEAKER_01: and support workers suffering from climate related harms.

1:11:23

SPEAKER_01: If SMUD is looking for additional funding

1:11:29

SPEAKER_01: to assure that your aggressive

1:11:31

SPEAKER_01: and very critically important goals are attained,

1:11:37

SPEAKER_01: and also to support the city in its climate plans,

1:11:44

SPEAKER_01: supporting the polluters pay super fund act

1:11:47

SPEAKER_01: would be a way to do that.

1:11:50

SPEAKER_02: Thank you, appreciate your comments.

1:11:53

SPEAKER_02: And our next commenter is Goli.

1:11:59

SPEAKER_02: Well, I know he was Goli, but the way it's spelled,

1:12:01

SPEAKER_02: I'm not sure, Shava MD with third act Sacramento.

1:12:07

Unknown: Doesn't matter.

1:12:08

SPEAKER_10: Goli, why don't you go over to the next slide.

1:12:10

SPEAKER_02: Sorry.

1:12:11

SPEAKER_10: That's quite right.

1:12:14

SPEAKER_10: We didn't hand them in.

1:12:18

SPEAKER_09: Good evening, Chair Sanborn, Vice Chair Herber

1:12:21

SPEAKER_09: and CEO's Lau as well as staff.

1:12:27

SPEAKER_09: My name is Goli Saba.

1:12:28

SPEAKER_09: I'm a retired family physician

1:12:30

Unknown: and facilitator for third act Sacramento.

1:12:33

SPEAKER_09: We have a problem.

1:12:35

SPEAKER_09: The problem is that climate change is accelerating

1:12:37

SPEAKER_09: as you all well know.

1:12:39

Unknown: And our city and county don't have the funds

1:12:43

SPEAKER_09: to implement the climate action plans

1:12:45

SPEAKER_09: and their climate emergency declaration goals

1:12:47

SPEAKER_09: from 2019 like SMUD has been implementing.

1:12:52

SPEAKER_09: So what's the solution?

1:12:53

SPEAKER_09: The solution is the bills that Pat just talked about,

1:12:56

SPEAKER_09: SB 684 and AB 1243.

1:13:03

SPEAKER_09: Because if you think about it,

1:13:04

SPEAKER_09: who should be paying for the cost of climate disasters?

1:13:08

SPEAKER_09: The LA fires, as you know, are estimated to have cost,

1:13:11

SPEAKER_09: to cost between 250 and 275 billion dollars.

1:13:16

SPEAKER_09: And that's more than the budget of California in one year.

1:13:20

SPEAKER_09: And California's already been paying with their health,

1:13:23

SPEAKER_09: with their taxes, with their higher insurance

1:13:26

SPEAKER_09: and some with their lives.

1:13:28

SPEAKER_09: And this would just make the oil companies

1:13:32

SPEAKER_09: that have literally caused so much of the problem

1:13:36

SPEAKER_09: to actually pay their fair share.

1:13:39

SPEAKER_09: And there's over 160 nonprofits, businesses, and unions

1:13:44

SPEAKER_09: who are supporting these bills.

1:13:47

SPEAKER_09: The oil companies like to say,

1:13:49

SPEAKER_09: oh, give the talking points, oh, it's dead.

1:13:51

SPEAKER_09: It's not dead.

1:13:53

SPEAKER_09: It's now a two year bill,

1:13:55

SPEAKER_09: and in January it's going to be coming up.

1:13:57

SPEAKER_09: And we're all over California working on this.

1:14:00

SPEAKER_09: So we already have multiple cities and counties

1:14:04

SPEAKER_09: that have passed resolutions supporting this,

1:14:08

SPEAKER_09: including Berkeley, LA, San Diego, Oxnard,

1:14:12

SPEAKER_09: County of San Francisco, Laguna Beach,

1:14:14

SPEAKER_09: County of Santa Cruz, and others.

1:14:16

SPEAKER_09: We have significant union support.

1:14:18

SPEAKER_09: California Federation of Teachers,

1:14:20

SPEAKER_09: California Nurses Association,

1:14:23

SPEAKER_09: there's multiple I could go on and on.

1:14:26

SPEAKER_09: Now what we need is bold elected leaders

1:14:29

SPEAKER_09: that listen to and respond to the issues

1:14:31

SPEAKER_09: that the community is facing.

1:14:34

SPEAKER_09: Leaders that are true to SMUD's stated vision,

1:14:37

SPEAKER_09: and I'm gonna quote just a section of it,

1:14:40

SPEAKER_09: from your website, SMUD will leverage its relationships

1:14:43

SPEAKER_09: to accelerate innovation, ensure energy affordability,

1:14:46

SPEAKER_09: reliability, protect the environment, and on and on,

1:14:50

SPEAKER_09: but promote environmental justice.

1:14:52

SPEAKER_09: So this key thing to leverage its relationships,

1:14:56

SPEAKER_09: it's already there.

1:14:57

SPEAKER_09: We also need leaders that follow SMUD's core values,

1:15:01

SPEAKER_09: and I'm sure you guys have this memorized,

1:15:03

SPEAKER_09: but I'm just gonna quote little section.

1:15:05

SPEAKER_09: Thing number A says promoting equity

1:15:07

SPEAKER_09: within SMUD's diverse communities.

1:15:09

SPEAKER_09: These bills set aside 40% of the funds

1:15:12

SPEAKER_09: to benefit communities hit hardest

1:15:14

SPEAKER_09: by the fossil fuel companies.

1:15:16

SPEAKER_09: And I know I'm running out of time,

1:15:18

SPEAKER_09: I just wanna mention that SMUD's climate emergency

1:15:21

SPEAKER_09: declaration from 2021 already supports taking action

1:15:25

SPEAKER_09: on laws such as this, and this is my last sentence,

1:15:29

SPEAKER_09: I'm sorry, whereas collaborative partnerships

1:15:32

SPEAKER_09: with SMUD customers, community government agencies,

1:15:35

SPEAKER_09: community leaders and organizations, businesses,

1:15:39

SPEAKER_09: they will collaborate so that they can leverage

1:15:42

SPEAKER_09: opportunities to achieve rapid transformative reductions

1:15:45

SPEAKER_09: in GHG emissions.

1:15:47

SPEAKER_09: So we ask you please to support this bill.

1:15:50

SPEAKER_09: Thank you, appreciate it.

1:15:51

SPEAKER_09: To send a letter to support this bill, thank you.

1:15:52

SPEAKER_02: Thank you, and we'll put it in the record,

1:15:54

SPEAKER_02: and send it to the board members.

1:15:57

SPEAKER_02: And Raylian?

1:15:59

SPEAKER_02: Are you next?

1:16:01

SPEAKER_02: I don't know your name or I'd pull your card up.

1:16:04

SPEAKER_02: Ruth, okay, we'll get you next.

1:16:09

SPEAKER_07: Hi, my name is Raylian Farris,

1:16:11

SPEAKER_07: and I'm with Third Act Sacramento.

1:16:13

SPEAKER_07: And I just wanna say I am in support

1:16:16

SPEAKER_07: of the Make Polluters Pay Superfund Act.

1:16:19

SPEAKER_07: And I'm asking the policy committee, all of you today,

1:16:24

SPEAKER_07: to recommend to the full board, please,

1:16:27

SPEAKER_07: that they endorse the Polluters Pay Superfund Act.

1:16:31

SPEAKER_07: Thank you very much for your consideration.

1:16:35

SPEAKER_07: Thank you, Raylian.

1:16:37

SPEAKER_02: And Ruth, is patiently waited.

1:16:43

SPEAKER_10: Good evening, Ruth Holton-Hudson,

1:16:45

SPEAKER_10: and I'm with Third Act Sacramento.

1:16:47

SPEAKER_10: And thank you so much.

1:16:48

SPEAKER_10: I must say I am so excited by the reports, SD9 and 10.

1:16:56

SPEAKER_10: But as you heard from the reports,

1:17:00

Unknown: federal funding has gone away.

1:17:03

Unknown: The state is also, as you know, in a deficit.

1:17:07

SPEAKER_10: The city is in a deficit.

1:17:09

Unknown: And so you might ask, why is it so important

1:17:14

SPEAKER_10: that we get smud to endorse

1:17:17

SPEAKER_10: this particular piece of legislation?

1:17:19

SPEAKER_10: So this legislation has passed in both Vermont and New York.

1:17:23

Unknown: And what put it over the top in New York

1:17:26

SPEAKER_10: was municipalities throughout the state of New York

1:17:29

SPEAKER_10: telling the legislature, we need these resources

1:17:33

SPEAKER_10: to make our plans and to meet our goals.

1:17:37

SPEAKER_10: Sacramento has a terrific climate action plan.

1:17:41

SPEAKER_10: You have a terrific climate action plan,

1:17:44

SPEAKER_10: a model for the state and the nation.

1:17:49

SPEAKER_10: These plans are not gonna go into effect,

1:17:52

SPEAKER_10: or will barely go into effect without resources.

1:17:57

SPEAKER_10: This is the one new revenue source.

1:18:01

SPEAKER_10: And the legislature needs to hear,

1:18:03

SPEAKER_10: and your local legislators need to hear,

1:18:06

SPEAKER_10: that smud, the city of Sacramento,

1:18:09

SPEAKER_10: all the governmental entities in Sacramento

1:18:13

SPEAKER_10: support this so that Sacramento can continue to be a leader,

1:18:17

SPEAKER_10: and smud especially can continue to be a leader

1:18:20

SPEAKER_10: in the implementation of these climate adaption plans.

1:18:25

SPEAKER_10: So we are talking to the city.

1:18:28

SPEAKER_10: They're very positive.

1:18:30

SPEAKER_10: And since the city already has many climate goals

1:18:36

SPEAKER_10: in its 2025 policy statement,

1:18:41

Unknown: all they need to do is write a letter in support.

1:18:44

SPEAKER_10: And so that's what we're talking to them about.

1:18:46

SPEAKER_10: We don't even need to have a resolution.

1:18:48

SPEAKER_10: And it would be fabulous for both the city then

1:18:52

SPEAKER_10: to write a letter of support,

1:18:53

Unknown: and for smud to write a letter of support.

1:18:56

SPEAKER_10: As Goley said, we've got Los Angeles, we have San Jose,

1:19:00

SPEAKER_10: we have San Diego, and San Francisco,

1:19:06

SPEAKER_10: and nine other jurisdictions,

1:19:08

SPEAKER_10: and we're talking to 20 others.

1:19:10

SPEAKER_10: We need it all done before January.

1:19:14

Unknown: And so, and both of the bills are in

1:19:18

SPEAKER_10: their respective judiciary committees,

1:19:20

Unknown: but they need to hear from jurisdictions around the state

1:19:25

Unknown: to say, this is really important to us.

1:19:28

SPEAKER_10: Right now they've heard from all the good guy groups

1:19:30

SPEAKER_10: and all the health groups,

1:19:32

SPEAKER_10: they need to hear from municipalities.

1:19:34

SPEAKER_10: So please would be wonderful if you could urge

1:19:38

SPEAKER_10: your fellow board meeting members

1:19:40

SPEAKER_10: to support a letter in support of Make Perleutis Pay.

1:19:44

SPEAKER_10: Thank you.

1:19:45

SPEAKER_10: Thank you, Ruth.

1:19:47

SPEAKER_02: Next speaker is Catherine Keeney.

1:19:54

SPEAKER_11: Hi, also here from Third Act.

1:19:58

SPEAKER_11: I'm very grateful to smud.

1:19:59

SPEAKER_11: I have electrified my house and as many other people.

1:20:04

SPEAKER_11: So I've got my skin in the game,

1:20:07

SPEAKER_11: and I think everyone needs to.

1:20:08

SPEAKER_11: It's an emergency.

1:20:10

SPEAKER_11: And it's not fair as a smud customer.

1:20:12

SPEAKER_11: I don't think it's fair that you and I are paying for this

1:20:17

SPEAKER_11: and the other, and then these huge large polluters

1:20:20

SPEAKER_11: are getting off scot-free.

1:20:23

SPEAKER_11: So it's important that they pay as well.

1:20:26

SPEAKER_11: And is it gonna hurt them?

1:20:27

SPEAKER_11: It will hurt them, I think.

1:20:28

SPEAKER_11: Maybe it won't, I don't know.

1:20:29

SPEAKER_11: But in any case, it hurt me too.

1:20:32

SPEAKER_11: Okay, and it's hurting you

1:20:33

SPEAKER_11: because you're having to support it all.

1:20:34

SPEAKER_11: So I am specifically asking you to please write

1:20:37

SPEAKER_11: a letter of support to go along with our other letters.

1:20:42

Unknown: Yes, I guess my final comment is,

1:20:51

SPEAKER_11: I'm very concerned about climate change.

1:20:53

SPEAKER_11: It needs to, our work on it has to happen ASAP.

1:20:57

SPEAKER_11: It's an emergency and there is no time to wait.

1:20:59

SPEAKER_11: We need every dollar we can put towards it.

1:21:03

SPEAKER_11: I'm speaking on behalf of my grandchildren,

1:21:07

SPEAKER_11: ages year and a half and six, and their children.

1:21:11

SPEAKER_11: And even us, selfishly, it's us.

1:21:14

SPEAKER_11: We're gonna be feeling the heat.

1:21:15

SPEAKER_11: We're already feeling the heat.

1:21:16

SPEAKER_11: We're gonna be feeling it more and more.

1:21:18

SPEAKER_11: So we need to take advantage of every revenue source,

1:21:21

SPEAKER_11: and that's why we're here tonight.

1:21:22

SPEAKER_11: Thank you.

1:21:24

SPEAKER_02: Thank you very much.

1:21:26

SPEAKER_02: And our last speaker is Sally Kelligan.

1:21:29

SPEAKER_02: The third act, welcome, Sally.

1:21:39

SPEAKER_06: Thank you.

1:21:40

SPEAKER_06: I was gonna talk on that same topic, but anyway,

1:21:45

SPEAKER_06: I really appreciate SMUD.

1:21:47

SPEAKER_06: Thank you.

1:21:48

SPEAKER_06: I come from LA and I came up here about nine years ago now,

1:21:53

SPEAKER_06: and I could not believe SMUD.

1:21:55

SPEAKER_06: You're a nonprofit utility that demonstrates

1:21:57

SPEAKER_06: a world conscientiousness in your policy decisions.

1:22:02

SPEAKER_06: You're enlightened, I love your surveys,

1:22:05

SPEAKER_06: I love that you let me know when something's gonna happen.

1:22:08

SPEAKER_06: You let me show my support by contributing

1:22:10

SPEAKER_06: on my monthly bills, so you have everything lined up

1:22:14

SPEAKER_06: that I feel grateful towards you about.

1:22:16

SPEAKER_06: I had liked Sacramento Tree previously,

1:22:19

SPEAKER_06: but I'll explain a little bit more about why

1:22:22

SPEAKER_06: I'm gravely disappointed with both of you.

1:22:24

SPEAKER_06: I'm devastated, I could ball.

1:22:28

SPEAKER_06: I started finding out about the Coyote Solar Project,

1:22:32

SPEAKER_06: SMUD's project, last week.

1:22:34

SPEAKER_06: I started doing research,

1:22:36

SPEAKER_06: and I attended Monday's Sacramento County

1:22:39

SPEAKER_06: Planning Commission.

1:22:41

SPEAKER_06: The location you have chosen will require cutting down

1:22:45

SPEAKER_06: 3,500 mature blue oaks, which UC Davis estimates

1:22:51

SPEAKER_06: to be between 175 and 400 years old.

1:22:55

SPEAKER_06: So you're gonna put up a solar project

1:22:58

Unknown: by destroying that many trees.

1:23:01

SPEAKER_06: Spalding of American River trees states that from 50 years ago,

1:23:05

SPEAKER_06: our area has only 10% of its riparian,

1:23:10

SPEAKER_06: I don't really know how to say that, riparian,

1:23:12

SPEAKER_06: forests remaining.

1:23:14

SPEAKER_06: From 1975, we have 10% of this type of forest

1:23:19

SPEAKER_06: remaining in our area, and your company,

1:23:23

SPEAKER_06: your organization, which I greatly admire,

1:23:26

SPEAKER_06: is saying chop the suckers down.

1:23:29

Unknown: Besides the forest, where you wanna put your project,

1:23:36

SPEAKER_06: is in the midst of gorgeous, expansive,

1:23:39

Unknown: green recreational farmlands.

1:23:42

SPEAKER_06: This tragic project would irreparably damage

1:23:45

SPEAKER_06: the area's ecosystem, plants, animals, insects,

1:23:48

SPEAKER_06: and very importantly, go back on your own goals.

1:23:52

SPEAKER_06: As you're gonna disrupt this forest's normal carbon

1:23:57

SPEAKER_06: sequist, thank you.

1:24:01

SPEAKER_06: Okay, so how can you compare the value of this forest

1:24:07

SPEAKER_06: versus about 35 years, because I guess your solar panels

1:24:10

SPEAKER_06: have a certain lifetime?

1:24:12

SPEAKER_06: Okay, so I can see I'm running out of time.

1:24:14

SPEAKER_06: So please review this also.

1:24:18

Unknown: Your plan says that you're gonna have a replacement.

1:24:20

SPEAKER_06: These trees take a very long time to grow,

1:24:23

SPEAKER_06: and they're probably not able to grow

1:24:25

SPEAKER_06: in our current climate, okay?

1:24:28

SPEAKER_06: So 175 to 400 years old cannot be replaced.

1:24:32

Unknown: They grow about this big in a year.

1:24:36

SPEAKER_06: In seven years, they may be this big.

1:24:39

SPEAKER_06: 25% of them die.

1:24:42

SPEAKER_06: Your program is going to replace them with 25% more,

1:24:46

SPEAKER_06: knowing that 25% are gonna die,

1:24:49

SPEAKER_06: and most of them aren't even gonna make it.

1:24:51

SPEAKER_06: Please review and look into this.

1:24:53

SPEAKER_02: Thank you, I just wanna clarify one thing,

1:24:56

SPEAKER_02: just for the record, you kept saying you, you, you.

1:24:58

SPEAKER_02: It's not our project.

1:25:00

SPEAKER_02: It was about buying the power from it.

1:25:02

SPEAKER_02: So I'm gonna turn to our attorney,

1:25:04

SPEAKER_02: because this is, we have to be very careful

1:25:08

SPEAKER_02: about the wording and making sure it's accurate.

1:25:11

SPEAKER_02: So on both issues, I'm gonna stop,

1:25:15

SPEAKER_02: because we can't go back and forth

1:25:17

SPEAKER_02: and let our attorney speak.

1:25:19

SPEAKER_12: Laura Lewis, Chief Legal and Government Affairs Officer,

1:25:21

SPEAKER_12: I'll address the first, the last issue first,

1:25:24

SPEAKER_12: which is the Coyote Creek Project.

1:25:27

SPEAKER_12: We do have an obligation under a power purchase agreement

1:25:31

SPEAKER_12: to purchase the power from that project,

1:25:33

SPEAKER_12: and that is simply our role,

1:25:35

SPEAKER_12: is to purchase the power from that project,

1:25:38

SPEAKER_12: contingent on that project,

1:25:40

SPEAKER_12: receiving all environmental approvals,

1:25:43

SPEAKER_12: and continuing along with the affordability metrics

1:25:48

SPEAKER_12: that we've been established by the board.

1:25:51

SPEAKER_12: So that is our role in that project.

1:25:53

SPEAKER_12: We are taking the power from that project as the off-taker.

1:25:58

SPEAKER_12: On the second item, on the polluters pay legislation,

1:26:04

SPEAKER_12: thank you again for expressing your interest

1:26:06

SPEAKER_12: in this legislation.

1:26:08

SPEAKER_12: We do appreciate the passion behind the efforts

1:26:10

SPEAKER_12: to address climate impacts and to hold polluters accountable.

1:26:15

SPEAKER_12: As you know, we do care deeply about the environment

1:26:17

SPEAKER_12: as an organization.

1:26:19

SPEAKER_12: It's reflected in our aggressive climate goals.

1:26:23

SPEAKER_12: But as a public utility,

1:26:24

SPEAKER_12: we're governed by strategic directives

1:26:26

SPEAKER_12: that center on reliability, affordability,

1:26:29

SPEAKER_12: and sustainability of our operations.

1:26:31

SPEAKER_12: And I know my staff did meet with Dr. Saba and Katie McCammon,

1:26:38

SPEAKER_12: hopefully I pronounced that correctly,

1:26:40

SPEAKER_12: last week to better understand this legislation

1:26:42

SPEAKER_12: and the way I understand it,

1:26:43

SPEAKER_12: the legislation really deals with broad environmental policy

1:26:47

SPEAKER_12: and not with issues that really directly impact

1:26:50

SPEAKER_12: our operations or our power supply.

1:26:52

SPEAKER_12: And that's typically the type of legislation

1:26:56

SPEAKER_12: we would weigh in on is something that really directs,

1:26:59

SPEAKER_12: directly impacts our operations or is really clearly aligned

1:27:02

SPEAKER_12: with our strategic directives.

1:27:04

SPEAKER_12: We typically don't weigh in on statewide policy matters.

1:27:08

SPEAKER_12: We receive and review hundreds of bills every year,

1:27:11

SPEAKER_12: as you can imagine.

1:27:12

SPEAKER_12: So we really try to be deliberate about how we use our voice.

1:27:15

SPEAKER_12: So we haven't weighed in on this legislation at this time.

1:27:20

SPEAKER_12: But that said, we're gonna continue to stay focused

1:27:23

SPEAKER_12: on delivering clean, reliable, affordable power

1:27:25

SPEAKER_12: for our customers.

1:27:27

SPEAKER_12: And we believe that's where we'll have the biggest impact.

1:27:29

SPEAKER_12: So that's where we are on that legislation

1:27:32

SPEAKER_12: at this point in time.

1:27:36

SPEAKER_12: So thank you very much.

1:27:39

SPEAKER_02: We really appreciate public comment

1:27:41

SPEAKER_02: and people taking the time to come here.

1:27:45

SPEAKER_02: It means a lot to us that we have this many people

1:27:47

SPEAKER_02: in the service territory that care so much.

1:27:52

SPEAKER_02: And again, we cannot talk back and forth about things

1:27:55

SPEAKER_02: that were not on the agenda, so we cannot do that.

1:27:59

SPEAKER_02: So with that, I think we are at the end of the meeting.

1:28:02

SPEAKER_02: Have we got any other requests to speak?

1:28:08

SPEAKER_10: I see any now.

1:28:10

SPEAKER_02: Okay, written comments received on items not on the agenda

1:28:13

SPEAKER_02: will be included in the record if received within two hours

1:28:16

SPEAKER_02: of the end of the meeting.

1:28:18

SPEAKER_02: And that is the last item on the agenda.

1:28:19

SPEAKER_02: So with that, the committee is.

1:28:21

SPEAKER_08: Wait a minute.

1:28:24

SPEAKER_08: Don't you call for follow up?

1:28:27

SPEAKER_02: Somebody in the direction.

1:28:28

SPEAKER_08: Yes, somebody. Oh, sorry, committee direction.

1:28:30

SPEAKER_08: Yes.

1:28:32

SPEAKER_12: Yes, we did have one item.

1:28:34

SPEAKER_12: And that staff will provide information

1:28:36

SPEAKER_12: on what we need to do to clarify

1:28:38

SPEAKER_12: for the Be Better Electric Certification.

1:28:40

SPEAKER_08: Thank you.

1:28:41

SPEAKER_12: Sorry about that.

1:28:42

SPEAKER_02: Thank you for that.

1:28:43

SPEAKER_02: All right, thank you so much.

1:28:44

SPEAKER_02: Everybody have a good night.