1
00:02:21,330 --> 00:02:23,433
>> I'll hereby convene our

2
00:02:24,330 --> 00:02:26,330
meeting. It's 2:31 for

3
00:02:26,330 --> 00:02:27,330
Pioneer Community Energies.

4
00:02:27,330 --> 00:02:29,330
This is a special meeting and

5
00:02:29,330 --> 00:02:31,330
we do not have a quorum. So

6
00:02:31,330 --> 00:02:32,330
we're going to recess until

7
00:02:32,330 --> 00:02:34,330
further notice.

8
00:02:35,330 --> 00:02:37,330
>>[RECESS]

9
00:12:52,330 --> 00:12:54,330
>> I'm going to reconvene from

10
00:12:54,330 --> 00:12:55,330
recess and we now have

11
00:12:55,330 --> 00:12:57,330
established a quorum. Our clerk

12
00:12:57,330 --> 00:13:00,330
is away from. Here she comes.

13
00:13:00,330 --> 00:13:02,433
She was doing something

14
00:13:03,330 --> 00:13:04,330
for me. Thank you very much.

15
00:13:04,330 --> 00:13:05,330
Theresa, if you'd please call

16
00:13:05,330 --> 00:13:07,330
the roll.

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00:13:07,330 --> 00:13:09,330
>>[CALLING ROLL]

18
00:13:28,330 --> 00:13:29,330
>> Let the record show that

19
00:13:29,330 --> 00:13:30,330
Director Jones is present.

20
00:13:30,330 --> 00:13:31,330
She's

21
00:13:31,330 --> 00:13:32,330
in closed session currently.

22
00:13:32,330 --> 00:13:33,330
So with that said,

23
00:13:33,330 --> 00:13:35,330
we do have a quorum,

24
00:13:35,330 --> 00:13:36,330
barely and we're going

25
00:13:36,330 --> 00:13:37,330
to go ahead

26
00:13:37,330 --> 00:13:39,330
without objection and recess

27
00:13:39,330 --> 00:13:40,330
to closed session. Hearing

28
00:13:40,330 --> 00:13:41,330
none,

29
00:13:41,330 --> 00:13:44,330
that shall be the order.

30
00:13:46,330 --> 00:13:48,330
>>[CLOSED SESSION]

31
00:30:05,330 --> 00:30:06,330
>> Thank you very much and

32
00:30:06,330 --> 00:30:07,330
we're going to reconvene

33
00:30:07,330 --> 00:30:09,330
from closed session. The board

34
00:30:09,330 --> 00:30:10,330
took two actions

35
00:30:10,330 --> 00:30:11,330
in closed session. The first

36
00:30:11,330 --> 00:30:13,330
item that we took was

37
00:30:13,330 --> 00:30:14,330
to adopt the recommendations

38
00:30:14,330 --> 00:30:16,330
from the employee welfare and

39
00:30:16,330 --> 00:30:18,330
benefits ad hoc committee.

40
00:30:18,330 --> 00:30:19,330
Those recommendations will be

41
00:30:19,330 --> 00:30:22,330
placed on the July board

42
00:30:22,330 --> 00:30:24,330
meeting agenda. We also took

43
00:30:24,330 --> 00:30:25,330
action to recommend that this

44
00:30:25,330 --> 00:30:27,330
board approve an extension,

45
00:30:27,330 --> 00:30:28,330
the contract

46
00:30:28,330 --> 00:30:30,330
for our executive officer

47
00:30:30,330 --> 00:30:31,330
for three years, and

48
00:30:31,330 --> 00:30:32,330
to make a change to his health

49
00:30:32,330 --> 00:30:34,330
and vision dental package that

50
00:30:34,330 --> 00:30:36,330
is actually on the consent

51
00:30:36,330 --> 00:30:38,330
agenda a little bit later

52
00:30:38,330 --> 00:30:39,330
today. So we did take those two

53
00:30:39,330 --> 00:30:40,330
actions in closed session. Let

54
00:30:40,330 --> 00:30:42,330
the record show that we do have

55
00:30:42,330 --> 00:30:44,330
a couple of additional members

56
00:30:44,330 --> 00:30:47,330
who have come in since we

57
00:30:47,330 --> 00:30:49,330
originally called the meeting

58
00:30:49,330 --> 00:30:51,330
to order, Directors Holmes and

59
00:30:51,330 --> 00:30:54,330
Director Ring. So thank you

60
00:30:54,330 --> 00:30:55,330
very much. And we do again have

61
00:30:55,330 --> 00:30:56,330
a quorum for the purposes

62
00:30:56,330 --> 00:30:58,330
of today's meeting. So

63
00:30:58,330 --> 00:30:59,330
with that said, next item on

64
00:30:59,330 --> 00:31:00,330
the agenda would be the agenda

65
00:31:00,330 --> 00:31:02,330
review and just

66
00:31:02,330 --> 00:31:03,330
to make a couple of changes,

67
00:31:03,330 --> 00:31:05,330
actually, we need

68
00:31:05,330 --> 00:31:06,330
to do public comment,

69
00:31:06,330 --> 00:31:08,330
too.

70
00:31:10,330 --> 00:31:12,330
>> We have.

71
00:31:14,330 --> 00:31:15,330
>> Do we have public comment

72
00:31:15,330 --> 00:31:16,330
on the agenda, Madam Clerk? I'm

73
00:31:16,330 --> 00:31:17,330
not seeing it.

74
00:31:17,330 --> 00:31:18,330
>> It's below the agenda

75
00:31:18,330 --> 00:31:20,330
review.

76
00:31:20,330 --> 00:31:21,330
>> It's presentation stamp.

77
00:31:21,330 --> 00:31:23,330
Thank you very much. Sorry

78
00:31:23,330 --> 00:31:24,330
about that. Okay, a couple

79
00:31:24,330 --> 00:31:25,330
of quick changes

80
00:31:25,330 --> 00:31:26,330
on the agenda. What I'd like

81
00:31:26,330 --> 00:31:27,330
to do for the purposes of

82
00:31:27,330 --> 00:31:28,330
ensuring that we have a quorum

83
00:31:28,330 --> 00:31:29,330
to take action today,

84
00:31:29,330 --> 00:31:31,330
because I know that Director

85
00:31:31,330 --> 00:31:32,330
Holmes needs to leave

86
00:31:32,330 --> 00:31:33,330
by 04:00 is

87
00:31:33,330 --> 00:31:34,330
to move items three and four

88
00:31:34,330 --> 00:31:37,330
after the consent agenda. And

89
00:31:37,330 --> 00:31:39,330
I'd also like

90
00:31:39,330 --> 00:31:41,330
to continue item 1F

91
00:31:41,330 --> 00:31:42,330
to our next meeting. 1F is

92
00:31:42,330 --> 00:31:44,330
the approval of the Pioneer

93
00:31:44,330 --> 00:31:46,330
Community Energy's 2024-27

94
00:31:46,330 --> 00:31:47,330
strategic plan. So that will be

95
00:31:47,330 --> 00:31:50,633
moved to our July meeting. We

96
00:31:52,330 --> 00:31:53,330
are missing several

97
00:31:53,330 --> 00:31:55,330
jurisdictions here today, and

98
00:31:55,330 --> 00:31:57,330
we thought that it would be

99
00:31:57,330 --> 00:31:59,330
prudent to have them here

100
00:31:59,330 --> 00:32:00,330
for that discussion.

101
00:32:00,330 --> 00:32:02,330
Discussion.

102
00:32:03,330 --> 00:32:04,330
Since it's setting our agenda

103
00:32:04,330 --> 00:32:05,330
for the next three years. So

104
00:32:05,330 --> 00:32:06,330
are there any other changes

105
00:32:06,330 --> 00:32:08,330
to the agenda as presented at

106
00:32:08,330 --> 00:32:09,330
this time?

107
00:32:09,330 --> 00:32:10,330
>> I have none.

108
00:32:10,330 --> 00:32:11,330
>> All right, seeing none

109
00:32:11,330 --> 00:32:12,330
without objection, then we'll

110
00:32:12,330 --> 00:32:13,330
consider the agenda approved as

111
00:32:13,330 --> 00:32:14,330
amended.

112
00:32:14,330 --> 00:32:15,330
>> Thank you for the

113
00:32:15,330 --> 00:32:16,330
accommodation.

114
00:32:16,330 --> 00:32:17,330
>> You're welcome. And

115
00:32:17,330 --> 00:32:18,330
with that said,

116
00:32:18,330 --> 00:32:19,330
there is no objection. The

117
00:32:19,330 --> 00:32:21,330
agenda is hereby approved as

118
00:32:21,330 --> 00:32:22,330
amended. Next item on the

119
00:32:22,330 --> 00:32:23,330
agenda is public comment. This

120
00:32:23,330 --> 00:32:24,330
is an opportunity

121
00:32:24,330 --> 00:32:25,330
for any member of the public

122
00:32:25,330 --> 00:32:26,330
to address the board

123
00:32:26,330 --> 00:32:27,330
on items that are not scheduled

124
00:32:27,330 --> 00:32:28,330
on today's agenda. We cannot

125
00:32:28,330 --> 00:32:29,330
take action on said items,

126
00:32:29,330 --> 00:32:30,330
but we can refer them to staff

127
00:32:30,330 --> 00:32:31,330
for subsequent research and

128
00:32:31,330 --> 00:32:33,330
potential coming back

129
00:32:33,330 --> 00:32:34,330
to the commission

130
00:32:34,330 --> 00:32:35,330
at a later time. The board,

131
00:32:35,330 --> 00:32:36,330
not the commission. Got

132
00:32:36,330 --> 00:32:37,330
to remember which entity I'm

133
00:32:37,330 --> 00:32:38,330
on today. Madam clerk, is there

134
00:32:38,330 --> 00:32:40,330
any public comment?

135
00:32:41,330 --> 00:32:42,330
>> There are no comments

136
00:32:42,330 --> 00:32:43,330
at this time.

137
00:32:43,330 --> 00:32:44,330
>> All right, no public

138
00:32:44,330 --> 00:32:45,330
comment. So we'll close public

139
00:32:45,330 --> 00:32:46,330
comment and move right along

140
00:32:46,330 --> 00:32:47,330
to the consent agenda.

141
00:32:47,330 --> 00:32:48,330
Boardmembers, we have items 1A

142
00:32:48,330 --> 00:32:49,330
through E on consent. Is there

143
00:32:49,330 --> 00:32:50,330
any request to remove any

144
00:32:50,330 --> 00:32:52,330
of those items

145
00:32:52,330 --> 00:32:54,330
from consent?

146
00:32:56,330 --> 00:32:57,330
>> I'd like to pull 1E,

147
00:32:57,330 --> 00:32:58,330
please.

148
00:32:58,330 --> 00:32:59,330
>> Any other changes

149
00:32:59,330 --> 00:33:01,433
to the consent agenda?

150
00:33:04,330 --> 00:33:06,433
>> Hearing none. I'd like

151
00:33:07,330 --> 00:33:08,330
to entertain a motion to adopt

152
00:33:08,330 --> 00:33:10,330
the consent agenda as amended.

153
00:33:10,330 --> 00:33:12,330
>> I shall move.

154
00:33:12,330 --> 00:33:13,330
>> Second.

155
00:33:13,330 --> 00:33:14,330
>> Been moved and seconded.

156
00:33:14,330 --> 00:33:15,330
Any further discussion?

157
00:33:15,330 --> 00:33:17,330
Hearing none. Madam Clerk,

158
00:33:17,330 --> 00:33:18,330
please call the roll.

159
00:33:18,330 --> 00:33:20,330
>>[CALLING ROLL]

160
00:33:36,330 --> 00:33:37,330
>> Let the record show that the

161
00:33:37,330 --> 00:33:38,330
motion has been adopted

162
00:33:38,330 --> 00:33:39,330
unanimously. Thank you very

163
00:33:39,330 --> 00:33:40,330
much. All right, we'll move on

164
00:33:40,330 --> 00:33:41,330
to item number one e, finance

165
00:33:41,330 --> 00:33:43,330
administration, this is the

166
00:33:43,330 --> 00:33:44,330
adopting a resolution

167
00:33:44,330 --> 00:33:45,330
establishing a board member

168
00:33:45,330 --> 00:33:46,330
reimbursement policy. Director

169
00:33:46,330 --> 00:33:47,330
Ring, did you have questions

170
00:33:47,330 --> 00:33:49,330
on that?

171
00:33:52,330 --> 00:33:54,330
>> I feel like this is me

172
00:33:54,330 --> 00:33:55,330
voting

173
00:33:55,330 --> 00:33:56,330
to give myself a raise, and I

174
00:33:56,330 --> 00:33:57,330
don't think that that is fair.

175
00:33:57,330 --> 00:33:58,330
It's what I don't like in

176
00:33:58,330 --> 00:33:59,330
government. I'm giving myself

177
00:33:59,330 --> 00:34:02,330
more money, and so I would be

178
00:34:02,330 --> 00:34:04,330
more comfortable if,

179
00:34:05,330 --> 00:34:07,330
and I don't remember if it was

180
00:34:07,330 --> 00:34:08,330
in there, but I would be more

181
00:34:08,330 --> 00:34:09,330
comfortable if it went

182
00:34:09,330 --> 00:34:11,330
into effect, say, in January or

183
00:34:11,330 --> 00:34:12,330
after we were each reappointed

184
00:34:12,330 --> 00:34:13,330
to the meeting, because then

185
00:34:13,330 --> 00:34:15,330
it's not really giving myself a

186
00:34:15,330 --> 00:34:16,330
raise,

187
00:34:16,330 --> 00:34:17,330
it's giving the board a raise.

188
00:34:17,330 --> 00:34:18,330
I may or may not be

189
00:34:18,330 --> 00:34:19,330
on the board next year.

190
00:34:19,330 --> 00:34:21,330
>> Just

191
00:34:21,330 --> 00:34:22,330
for clarification purposes.

192
00:34:22,330 --> 00:34:23,330
Thank you very much, Director

193
00:34:23,330 --> 00:34:24,330
Ring. I appreciate what you're

194
00:34:24,330 --> 00:34:25,330
saying in this instance, this

195
00:34:25,330 --> 00:34:26,330
is just a policy that will

196
00:34:26,330 --> 00:34:27,330
allow us to be reimbursed

197
00:34:27,330 --> 00:34:28,330
should we attend a conference

198
00:34:28,330 --> 00:34:30,330
or training or something

199
00:34:30,330 --> 00:34:31,330
of that extent. So it's your

200
00:34:31,330 --> 00:34:34,330
mileage if you are attending?

201
00:34:36,330 --> 00:34:39,330
I think, I've been the only

202
00:34:39,330 --> 00:34:40,330
one that has attended. As you

203
00:34:40,330 --> 00:34:42,330
know, the board sent me on cap

204
00:34:42,330 --> 00:34:43,330
to cap, and so I had my mileage

205
00:34:43,330 --> 00:34:44,330
reimbursed. And it's just

206
00:34:44,330 --> 00:34:46,433
allowing that. It's actually

207
00:34:51,330 --> 00:34:52,330
just establishing a policy

208
00:34:52,330 --> 00:34:53,330
because they've been doing it,

209
00:34:53,330 --> 00:34:54,330
but we just have been. It's

210
00:34:54,330 --> 00:34:55,330
been without a policy.

211
00:34:55,330 --> 00:34:56,330
>> So this has already been

212
00:34:56,330 --> 00:34:58,330
in existence the whole time,

213
00:34:58,330 --> 00:34:59,330
and we're just.

214
00:34:59,330 --> 00:35:00,330
>> We just need

215
00:35:00,330 --> 00:35:01,330
to have a policy

216
00:35:01,330 --> 00:35:03,330
to codify it.

217
00:35:03,330 --> 00:35:04,330
>> What triggered it was the

218
00:35:04,330 --> 00:35:05,330
annual conference

219
00:35:05,330 --> 00:35:06,330
of the CCA back in April, when

220
00:35:06,330 --> 00:35:07,330
we realized we didn't really

221
00:35:07,330 --> 00:35:09,330
have a policy,

222
00:35:09,330 --> 00:35:10,330
but we've been doing it all

223
00:35:10,330 --> 00:35:11,330
along and we're gonna give them

224
00:35:11,330 --> 00:35:12,330
births in April.

225
00:35:12,330 --> 00:35:14,330
>> There's no per diem.

226
00:35:14,330 --> 00:35:15,330
For example,

227
00:35:15,330 --> 00:35:16,330
some entities that you sit on,

228
00:35:16,330 --> 00:35:17,330
you get $100. You know,

229
00:35:17,330 --> 00:35:19,330
this is not that. This is

230
00:35:19,330 --> 00:35:20,330
simply no compensation.

231
00:35:20,330 --> 00:35:22,330
There's no compensation or

232
00:35:22,330 --> 00:35:24,330
raise.

233
00:35:24,330 --> 00:35:25,330
>> It's simply still a benefit,

234
00:35:25,330 --> 00:35:27,330
though, right?

235
00:35:27,330 --> 00:35:28,330
>> Yes, there's a benefit

236
00:35:28,330 --> 00:35:29,330
to the extent.

237
00:35:29,330 --> 00:35:30,330
>> That you are,

238
00:35:30,330 --> 00:35:31,330
but if it's already been

239
00:35:31,330 --> 00:35:32,330
in existence.

240
00:35:32,330 --> 00:35:33,330
>> Yes. It's just codifying

241
00:35:33,330 --> 00:35:35,330
into an actual policy because

242
00:35:35,330 --> 00:35:36,330
we didn't have,

243
00:35:36,330 --> 00:35:37,330
we had an informal policy,

244
00:35:37,330 --> 00:35:38,330
and so we just need

245
00:35:38,330 --> 00:35:39,330
to put that in policy so that

246
00:35:39,330 --> 00:35:40,330
it's consistent. You know, the

247
00:35:40,330 --> 00:35:41,330
implementation is consistent.

248
00:35:41,330 --> 00:35:42,330
It says that you'll seek

249
00:35:42,330 --> 00:35:44,330
economic means by which

250
00:35:44,330 --> 00:35:45,330
to travel and things

251
00:35:45,330 --> 00:35:47,330
of that nature. So, you know.

252
00:35:47,330 --> 00:35:48,330
But anyway. So does that answer

253
00:35:48,330 --> 00:35:49,330
any. Address your concerns?

254
00:35:49,330 --> 00:35:52,633
Great. Okay, thank you so much.

255
00:35:53,330 --> 00:35:54,330
Are there any other questions

256
00:35:54,330 --> 00:35:56,330
on this item?

257
00:36:06,330 --> 00:36:07,330
>> Chair, I'll move the item.

258
00:36:07,330 --> 00:36:08,330
>> All right, let me just ask

259
00:36:08,330 --> 00:36:09,330
for public comment,

260
00:36:09,330 --> 00:36:10,330
and I'm sure I know the answer,

261
00:36:10,330 --> 00:36:11,330
but we have to do it anyway.

262
00:36:11,330 --> 00:36:12,330
Madam Clerk, any public comment

263
00:36:12,330 --> 00:36:13,330
on this item?

264
00:36:13,330 --> 00:36:14,330
>> There are no comments

265
00:36:14,330 --> 00:36:15,330
at this time.

266
00:36:15,330 --> 00:36:16,330
>> Thank you. Director

267
00:36:16,330 --> 00:36:17,330
Holmes?

268
00:36:17,330 --> 00:36:18,330
>> Yes, I moved the item.

269
00:36:18,330 --> 00:36:19,330
>> Thank you. It's been moved.

270
00:36:19,330 --> 00:36:20,330
Is there a second?

271
00:36:20,330 --> 00:36:21,330
>> Second.

272
00:36:21,330 --> 00:36:22,330
>> Any further discussion?

273
00:36:22,330 --> 00:36:23,330
Hearing none. Madam Clerk,

274
00:36:23,330 --> 00:36:24,330
please call the roll.

275
00:36:24,330 --> 00:36:26,330
>>[CALLING ROLL]

276
00:36:34,330 --> 00:36:35,330
>> Let the record show that the

277
00:36:35,330 --> 00:36:36,330
resolution has been adopted

278
00:36:36,330 --> 00:36:37,330
unanimously. Thank you very

279
00:36:37,330 --> 00:36:38,330
much and thank you

280
00:36:38,330 --> 00:36:39,330
for your questions, Director

281
00:36:39,330 --> 00:36:40,330
Ring. Appreciate them. All

282
00:36:40,330 --> 00:36:41,330
right, so the next item

283
00:36:41,330 --> 00:36:42,330
on the agenda,

284
00:36:42,330 --> 00:36:43,330
since we move the agenda

285
00:36:43,330 --> 00:36:44,330
around a little bit, is our

286
00:36:44,330 --> 00:36:46,433
fiscal year 24-25 budget.

287
00:36:47,330 --> 00:36:49,330
>> Thank you, Madam Chair. I

288
00:36:49,330 --> 00:36:50,330
think to discuss this item will

289
00:36:50,330 --> 00:36:52,330
be our director

290
00:36:52,330 --> 00:36:54,330
of finance and administration,

291
00:36:54,330 --> 00:36:55,330
Brad Kane.

292
00:36:55,330 --> 00:36:57,330
>> Good afternoon,

293
00:36:57,330 --> 00:36:59,330
Boardmembers. Theresa, if you

294
00:36:59,330 --> 00:37:00,330
could bring up the

295
00:37:00,330 --> 00:37:01,330
presentation. Our little street

296
00:37:01,330 --> 00:37:03,330
map that we show you

297
00:37:03,330 --> 00:37:05,433
of where we are

298
00:37:08,330 --> 00:37:09,330
in the budget process. So the

299
00:37:09,330 --> 00:37:11,330
board adopted a strategic plan

300
00:37:11,330 --> 00:37:13,330
back in the years 21

301
00:37:13,330 --> 00:37:16,330
to 24, and then is currently is

302
00:37:16,330 --> 00:37:18,433
finalizing the strategic plan

303
00:37:19,330 --> 00:37:21,433
for 24 27. Both of those

304
00:37:22,330 --> 00:37:23,330
documents were instrumental

305
00:37:23,330 --> 00:37:25,330
in setting the stage for

306
00:37:25,330 --> 00:37:26,330
Pioneer's budget. But back in

307
00:37:26,330 --> 00:37:27,330
April, the executive team got

308
00:37:27,330 --> 00:37:29,330
together,

309
00:37:30,330 --> 00:37:32,330
keeping the strategic plans

310
00:37:32,330 --> 00:37:35,330
in mind to what do we want

311
00:37:35,330 --> 00:37:37,330
to propose? What do we need

312
00:37:37,330 --> 00:37:39,330
to propose to fulfill the

313
00:37:39,330 --> 00:37:41,330
board's strategic priorities

314
00:37:42,330 --> 00:37:43,330
and goals? And so that's what

315
00:37:43,330 --> 00:37:46,330
happened in April. Then in May

316
00:37:46,330 --> 00:37:48,330
and June, the employee benefit,

317
00:37:48,330 --> 00:37:50,330
welfare and benefit committee

318
00:37:50,330 --> 00:37:51,330
met to discuss employee issues

319
00:37:51,330 --> 00:37:54,330
and pay and benefits. And the

320
00:37:54,330 --> 00:37:56,330
audit committee also met in

321
00:37:56,330 --> 00:37:58,330
May

322
00:37:59,330 --> 00:38:02,330
to heard the proposed budget,

323
00:38:02,330 --> 00:38:04,330
provided feedback,

324
00:38:05,330 --> 00:38:07,330
and then this board at the may

325
00:38:07,330 --> 00:38:09,330
meeting,

326
00:38:09,330 --> 00:38:10,330
also heard the presentation on

327
00:38:10,330 --> 00:38:13,330
the proposed budget and taking

328
00:38:13,330 --> 00:38:14,330
in all that feedback. We bring

329
00:38:14,330 --> 00:38:16,330
back to you today the

330
00:38:16,330 --> 00:38:18,330
recommended budget. And there

331
00:38:18,330 --> 00:38:20,330
are a few changes

332
00:38:20,330 --> 00:38:22,330
from what you sought,

333
00:38:22,330 --> 00:38:24,330
the proposed budget,

334
00:38:24,330 --> 00:38:26,330
and we will go

335
00:38:26,330 --> 00:38:27,330
over those few changes. So

336
00:38:27,330 --> 00:38:29,330
right now we're at the June 20

337
00:38:29,330 --> 00:38:30,330
meeting, hopefully for your

338
00:38:30,330 --> 00:38:32,330
consideration and approval

339
00:38:32,330 --> 00:38:33,330
of the recommended budget. And

340
00:38:33,330 --> 00:38:35,330
then the fiscal year begins

341
00:38:35,330 --> 00:38:36,330
on July 1. Next slide,

342
00:38:36,330 --> 00:38:38,330
please. So the highlights,

343
00:38:38,330 --> 00:38:39,330
the budget is balanced. There

344
00:38:39,330 --> 00:38:41,330
have been increased power

345
00:38:41,330 --> 00:38:42,330
supply costs compared

346
00:38:42,330 --> 00:38:43,330
to the prior fiscal year. That

347
00:38:43,330 --> 00:38:44,330
primarily is coming from

348
00:38:44,330 --> 00:38:46,330
resource adequacy and renewable

349
00:38:46,330 --> 00:38:47,330
energy. Also, a full year

350
00:38:47,330 --> 00:38:49,330
of service to Grass Valley and

351
00:38:49,330 --> 00:38:50,330
Nevada City are incorporated in

352
00:38:50,330 --> 00:38:51,330
this next year's budget rather

353
00:38:51,330 --> 00:38:53,330
than the six months in the

354
00:38:53,330 --> 00:38:55,330
current fiscal year that

355
00:38:55,330 --> 00:38:56,330
impacts both the revenues and

356
00:38:56,330 --> 00:38:58,330
expenses and then some expense

357
00:38:58,330 --> 00:39:00,330
changes for the CRR. We have

358
00:39:00,330 --> 00:39:01,330
broker fees related to that and

359
00:39:01,330 --> 00:39:03,330
the battery optimization. And

360
00:39:03,330 --> 00:39:05,330
the battery optimization is a

361
00:39:05,330 --> 00:39:07,330
new effort that is connected to

362
00:39:07,330 --> 00:39:10,330
the solar farm known as yellow

363
00:39:10,330 --> 00:39:12,330
pine. But the thing about both

364
00:39:12,330 --> 00:39:14,330
of these expenses is they

365
00:39:14,330 --> 00:39:16,433
actually generate revenue. So

366
00:39:17,330 --> 00:39:19,330
the CRR brokerage fees actually

367
00:39:19,330 --> 00:39:21,330
monetizes the CRRs and the

368
00:39:21,330 --> 00:39:23,433
battery optimization takes into

369
00:39:24,330 --> 00:39:26,330
account prices and cost related

370
00:39:26,330 --> 00:39:28,330
to Caiso, when

371
00:39:29,330 --> 00:39:30,330
to charge the battery and when

372
00:39:30,330 --> 00:39:32,330
to discharge the battery. And

373
00:39:32,330 --> 00:39:34,330
so both of those expenses are

374
00:39:34,330 --> 00:39:36,330
anticipated to generate about

375
00:39:36,330 --> 00:39:38,330
$10 million in revenue

376
00:39:39,330 --> 00:39:42,633
for pioneer and then the growth

377
00:39:44,330 --> 00:39:46,330
of programs. So last year, 1%

378
00:39:46,330 --> 00:39:49,633
of the energy sale revenue was

379
00:39:50,330 --> 00:39:52,433
earmarked for programs and

380
00:39:53,330 --> 00:39:55,330
in this upcoming budget year,

381
00:39:55,330 --> 00:39:57,330
2% has been earmarked

382
00:39:58,330 --> 00:40:01,633
for that. And then the forecast

383
00:40:02,330 --> 00:40:04,330
has also been lowered to more

384
00:40:04,330 --> 00:40:06,330
accurately reflect the activity

385
00:40:06,330 --> 00:40:09,330
for the NIM accounts. And so

386
00:40:09,330 --> 00:40:11,330
that doesn't have a, you know,

387
00:40:11,330 --> 00:40:13,330
neither a good or bad impact

388
00:40:13,330 --> 00:40:16,633
on the budget. It's just a

389
00:40:17,330 --> 00:40:19,330
change that happened

390
00:40:19,330 --> 00:40:22,330
from the prior fiscal year.

391
00:40:22,330 --> 00:40:24,330
Next slide, please. So from a

392
00:40:24,330 --> 00:40:26,433
way broad highlighted summary,

393
00:40:27,330 --> 00:40:29,330
we're looking at about $260

394
00:40:29,330 --> 00:40:31,330
million in revenue, power

395
00:40:31,330 --> 00:40:33,330
expenses, about 210. That

396
00:40:34,330 --> 00:40:36,330
leaves a contribution margin

397
00:40:36,330 --> 00:40:38,330
of almost 49 or 50 million,

398
00:40:38,330 --> 00:40:40,330
which then the operating

399
00:40:40,330 --> 00:40:42,330
expense and debt service comes

400
00:40:42,330 --> 00:40:44,330
out of that,

401
00:40:44,330 --> 00:40:46,330
which is anticipated to be

402
00:40:46,330 --> 00:40:48,330
around 24 million,

403
00:40:48,330 --> 00:40:50,433
which then leaves about 24

404
00:40:51,330 --> 00:40:53,330
million that could be

405
00:40:53,330 --> 00:40:54,330
transferred

406
00:40:54,330 --> 00:40:57,330
into the net position for

407
00:40:57,330 --> 00:40:59,433
Pioneer. Next slide, please.

408
00:41:00,330 --> 00:41:02,330
So inflow and outflow,

409
00:41:02,330 --> 00:41:03,330
we have our almost $260 million

410
00:41:03,330 --> 00:41:05,330
of revenue. No surprise.

411
00:41:05,330 --> 00:41:07,330
Energy sales is the bulk

412
00:41:07,330 --> 00:41:09,330
of that, representing 95%. And

413
00:41:09,330 --> 00:41:12,330
then the CRR and battery

414
00:41:12,330 --> 00:41:14,330
optimization at 4%, that's $10

415
00:41:14,330 --> 00:41:16,330
million. And even though it's

416
00:41:16,330 --> 00:41:18,330
1%, it's our interest earnings

417
00:41:18,330 --> 00:41:20,330
that still is getting pretty

418
00:41:20,330 --> 00:41:22,330
close to $3 million. So 1% is

419
00:41:22,330 --> 00:41:24,330
still a significant number.

420
00:41:24,330 --> 00:41:26,330
And that is really driven

421
00:41:26,330 --> 00:41:28,330
by two things. One is,

422
00:41:28,330 --> 00:41:31,330
as pioneer has moved forward

423
00:41:32,330 --> 00:41:35,330
in meeting its reserve targets,

424
00:41:36,330 --> 00:41:38,330
that's meant that there's more

425
00:41:38,330 --> 00:41:40,330
money that can earn interest

426
00:41:40,330 --> 00:41:41,330
earnings,

427
00:41:41,330 --> 00:41:44,330
but also just the change

428
00:41:44,330 --> 00:41:46,330
in the last three years of how

429
00:41:46,330 --> 00:41:48,433
interest rates have increased.

430
00:41:49,330 --> 00:41:51,330
And so although 1%, I thought

431
00:41:51,330 --> 00:41:53,433
$3 million was still pretty

432
00:41:54,330 --> 00:41:55,330
notable and still should be

433
00:41:55,330 --> 00:41:57,330
mentioned. And then

434
00:41:57,330 --> 00:41:59,330
on our expense side, you have,

435
00:41:59,330 --> 00:42:01,330
as it has been year

436
00:42:01,330 --> 00:42:03,330
in and year out,

437
00:42:03,330 --> 00:42:04,330
power supply costs represent

438
00:42:04,330 --> 00:42:06,330
90% of our expenditures.

439
00:42:07,330 --> 00:42:09,330
Programs this year is a 2%

440
00:42:09,330 --> 00:42:10,330
allocation. Debt service is

441
00:42:10,330 --> 00:42:12,433
also 2%. Consulting service is

442
00:42:13,330 --> 00:42:15,330
3%. Employee compensation,

443
00:42:16,330 --> 00:42:18,330
which includes salaries and

444
00:42:18,330 --> 00:42:20,433
benefits, is 2%. And then

445
00:42:21,330 --> 00:42:23,330
operating expenses,

446
00:42:23,330 --> 00:42:26,330
which is all other types

447
00:42:26,330 --> 00:42:29,330
of things, whether it's rent,

448
00:42:29,330 --> 00:42:31,330
leases, software, variety

449
00:42:31,330 --> 00:42:34,330
of things, rounds that up

450
00:42:34,330 --> 00:42:36,330
to be 1%. Next slide, please.

451
00:42:36,330 --> 00:42:38,330
So the things that have been

452
00:42:38,330 --> 00:42:39,330
changed from the recommended

453
00:42:39,330 --> 00:42:41,330
budget that was discussed

454
00:42:41,330 --> 00:42:43,330
at the May meeting and the

455
00:42:43,330 --> 00:42:44,330
proposed budget, energy sales,

456
00:42:44,330 --> 00:42:46,330
that revenue estimate has been

457
00:42:46,330 --> 00:42:48,330
increased

458
00:42:48,330 --> 00:42:49,330
by a million dollars. The power

459
00:42:49,330 --> 00:42:51,330
supply costs have been

460
00:42:51,330 --> 00:42:52,330
increased by $1.74 million.

461
00:42:52,330 --> 00:42:54,330
The admin division increased

462
00:42:54,330 --> 00:42:56,330
by 200,000. And that's

463
00:42:56,330 --> 00:42:57,330
primarily so that pioneer can

464
00:42:57,330 --> 00:42:59,330
be conjoined a JPA called the

465
00:42:59,330 --> 00:43:01,330
California community Power.

466
00:43:01,330 --> 00:43:03,330
And the benefit

467
00:43:03,330 --> 00:43:04,330
of that is that's a JPA form

468
00:43:04,330 --> 00:43:06,330
from a group

469
00:43:06,330 --> 00:43:08,330
of ccas that allows Pioneer to,

470
00:43:08,330 --> 00:43:09,330
in a cost effective way

471
00:43:09,330 --> 00:43:11,330
with other ccas, purchase clean

472
00:43:11,330 --> 00:43:13,330
energy and reliability

473
00:43:13,330 --> 00:43:15,330
resources. So we see that as a

474
00:43:15,330 --> 00:43:17,330
good tool to have

475
00:43:17,330 --> 00:43:19,330
in our toolbox to help us

476
00:43:19,330 --> 00:43:21,330
contain energy costs. And then

477
00:43:21,330 --> 00:43:23,330
the finance division,

478
00:43:23,330 --> 00:43:25,433
there's an increase of

479
00:43:27,330 --> 00:43:29,330
174,000. And that's related

480
00:43:29,330 --> 00:43:31,330
to asking the board to consider

481
00:43:31,330 --> 00:43:33,330
a 20th pioneer position. And

482
00:43:33,330 --> 00:43:35,330
that's for an information

483
00:43:35,330 --> 00:43:37,330
technology analyst. Next slide,

484
00:43:37,330 --> 00:43:39,330
please. So

485
00:43:39,330 --> 00:43:42,330
in the current year 23-24, we

486
00:43:42,330 --> 00:43:44,330
had 18 funded full time

487
00:43:44,330 --> 00:43:46,330
positions. We're asking for 20

488
00:43:46,330 --> 00:43:48,330
funded full time positions in

489
00:43:48,330 --> 00:43:49,330
24-25, the 19th position we

490
00:43:49,330 --> 00:43:50,330
discussed in more detail

491
00:43:50,330 --> 00:43:52,330
at the last meeting.

492
00:43:52,330 --> 00:43:54,330
But that is for a project

493
00:43:54,330 --> 00:43:56,330
of development manager,

494
00:43:57,330 --> 00:43:59,330
which would focus initially

495
00:43:59,330 --> 00:44:01,330
on biomass,

496
00:44:01,330 --> 00:44:02,330
but wouldn't be limited

497
00:44:02,330 --> 00:44:04,330
to just that effort. And then

498
00:44:04,330 --> 00:44:06,330
the information technology

499
00:44:06,330 --> 00:44:07,330
analysis would be dedicated to

500
00:44:07,330 --> 00:44:09,330
pioneers increasing it demands

501
00:44:09,330 --> 00:44:11,330
and needs,

502
00:44:11,330 --> 00:44:13,330
and also provide more resources

503
00:44:13,330 --> 00:44:15,330
to respond and improve our

504
00:44:15,330 --> 00:44:17,330
cybersecurity. And the results

505
00:44:17,330 --> 00:44:20,330
that we saw from our it audit

506
00:44:20,330 --> 00:44:22,330
that recently concluded. Next

507
00:44:22,330 --> 00:44:24,330
slide, please. So,

508
00:44:24,330 --> 00:44:26,330
from an organizational chart,

509
00:44:26,330 --> 00:44:28,330
this is what Pioneer would look

510
00:44:28,330 --> 00:44:30,330
like, starting

511
00:44:31,330 --> 00:44:33,330
with the green boxes. The green

512
00:44:33,330 --> 00:44:35,330
boxes are what we would all

513
00:44:35,330 --> 00:44:37,330
consider our critical

514
00:44:37,330 --> 00:44:38,330
consultant contracts that we

515
00:44:38,330 --> 00:44:40,330
have that really make it

516
00:44:40,330 --> 00:44:42,330
possible for Pioneer

517
00:44:43,330 --> 00:44:45,330
to service our customers

518
00:44:45,330 --> 00:44:47,330
with the staff that we have.

519
00:44:47,330 --> 00:44:50,330
The blue boxes represents our

520
00:44:50,330 --> 00:44:52,330
existing approved positions

521
00:44:52,330 --> 00:44:53,330
of staff, and then the brown

522
00:44:53,330 --> 00:44:55,330
boxes are the two requested new

523
00:44:55,330 --> 00:44:57,330
positions, the project

524
00:44:57,330 --> 00:44:59,330
development manager and the

525
00:44:59,330 --> 00:45:01,330
information technology analyst.

526
00:45:01,330 --> 00:45:03,330
Next slide, please. So, trying

527
00:45:03,330 --> 00:45:05,330
to keep this short. Moving

528
00:45:05,330 --> 00:45:07,330
to the recommendation,

529
00:45:07,330 --> 00:45:10,330
we are asking for the board

530
00:45:10,330 --> 00:45:11,330
to approve the fiscal year 24

531
00:45:11,330 --> 00:45:13,330
budget,

532
00:45:14,330 --> 00:45:16,330
approving the job descriptions

533
00:45:16,330 --> 00:45:17,330
for the information technology

534
00:45:17,330 --> 00:45:19,330
analyst, the information

535
00:45:19,330 --> 00:45:21,330
technology administrator and

536
00:45:21,330 --> 00:45:22,330
project development manager.

537
00:45:22,330 --> 00:45:24,330
Let me pause there and say,

538
00:45:24,330 --> 00:45:25,330
although we're not asking

539
00:45:25,330 --> 00:45:27,330
for funding for the information

540
00:45:27,330 --> 00:45:28,330
technology administrator,

541
00:45:28,330 --> 00:45:30,330
we wanted

542
00:45:30,330 --> 00:45:31,330
to establish a career path

543
00:45:31,330 --> 00:45:33,330
early on so that there is,

544
00:45:33,330 --> 00:45:34,330
well, career paths just make it

545
00:45:34,330 --> 00:45:36,330
sometimes easier

546
00:45:36,330 --> 00:45:38,330
for getting interest

547
00:45:38,330 --> 00:45:40,330
in recruitment efforts too.

548
00:45:40,330 --> 00:45:43,633
And so, although we don't see

549
00:45:44,330 --> 00:45:46,330
that being something that would

550
00:45:46,330 --> 00:45:48,330
happen really

551
00:45:48,330 --> 00:45:50,330
in the next few years,

552
00:45:50,330 --> 00:45:52,330
we did want

553
00:45:52,330 --> 00:45:53,330
to establish that career path.

554
00:45:53,330 --> 00:45:55,330
And then also approving the

555
00:45:55,330 --> 00:45:57,330
title change of the director

556
00:45:57,330 --> 00:45:59,330
of public affairs,

557
00:45:59,330 --> 00:46:00,330
marketing and programs

558
00:46:00,330 --> 00:46:02,330
to director

559
00:46:02,330 --> 00:46:04,330
of communications,

560
00:46:04,330 --> 00:46:06,330
which there is no change

561
00:46:06,330 --> 00:46:08,330
to the job description,

562
00:46:08,330 --> 00:46:10,330
no change

563
00:46:10,330 --> 00:46:13,330
to the salary range. It's just

564
00:46:13,330 --> 00:46:16,330
truly a change in title. And

565
00:46:16,330 --> 00:46:18,433
then approving the salary

566
00:46:19,330 --> 00:46:21,330
schedule that for,

567
00:46:22,330 --> 00:46:24,330
that reflects the two new

568
00:46:24,330 --> 00:46:26,433
positions, two new funded

569
00:46:27,330 --> 00:46:29,330
positions,

570
00:46:29,330 --> 00:46:31,330
the information technology

571
00:46:31,330 --> 00:46:33,330
analyst,

572
00:46:33,330 --> 00:46:35,330
the project development

573
00:46:35,330 --> 00:46:38,330
manager, but also establishes a

574
00:46:38,330 --> 00:46:40,330
salary range

575
00:46:40,330 --> 00:46:42,330
for the administrator

576
00:46:42,330 --> 00:46:44,330
for information technology.

577
00:46:44,330 --> 00:46:46,330
And you should have received a

578
00:46:46,330 --> 00:46:48,330
revised salary schedule

579
00:46:48,330 --> 00:46:50,330
for that. And the reason for

580
00:46:50,330 --> 00:46:52,330
that is the communication

581
00:46:52,330 --> 00:46:54,330
coordinator,

582
00:46:54,330 --> 00:46:55,330
which was approved. Job

583
00:46:55,330 --> 00:46:56,330
descriptions and salary ranges

584
00:46:56,330 --> 00:46:58,330
were approved a few months ago.

585
00:46:58,330 --> 00:46:59,330
We actually have two people

586
00:46:59,330 --> 00:47:00,330
that are now on staff

587
00:47:00,330 --> 00:47:01,330
with that position.

588
00:47:01,330 --> 00:47:02,330
Unfortunately, that line wasn't

589
00:47:02,330 --> 00:47:03,330
included

590
00:47:03,330 --> 00:47:04,330
in the original agenda packet,

591
00:47:04,330 --> 00:47:05,330
and so that's been added and

592
00:47:05,330 --> 00:47:06,330
revised, but there's no change

593
00:47:06,330 --> 00:47:07,330
with any of those numbers. And

594
00:47:07,330 --> 00:47:08,330
with that, I'd be happy

595
00:47:08,330 --> 00:47:09,330
to answer any questions.

596
00:47:09,330 --> 00:47:10,330
>> Thank you very much. As I'm

597
00:47:10,330 --> 00:47:11,330
trying to choke on my water.

598
00:47:11,330 --> 00:47:12,330
Appreciate the presentation,

599
00:47:12,330 --> 00:47:13,330
Brad. And this, let's open up

600
00:47:13,330 --> 00:47:14,330
for any questions. Are there

601
00:47:14,330 --> 00:47:15,330
questions? Directors? No

602
00:47:15,330 --> 00:47:16,330
questions. Suzanne? No

603
00:47:16,330 --> 00:47:17,330
questions.

604
00:47:17,330 --> 00:47:18,330
>> Quick question.

605
00:47:18,330 --> 00:47:19,330
>> Yes.

606
00:47:19,330 --> 00:47:20,330
>> With the hiring of the new

607
00:47:20,330 --> 00:47:21,330
two positions, or we're

608
00:47:21,330 --> 00:47:22,330
expecting consultant costs

609
00:47:22,330 --> 00:47:23,330
to go down.

610
00:47:23,330 --> 00:47:24,330
>> On the project development

611
00:47:24,330 --> 00:47:26,330
side, I see longer term,

612
00:47:26,330 --> 00:47:27,330
there could be less reliance on

613
00:47:27,330 --> 00:47:29,330
consultants. I don't see that

614
00:47:29,330 --> 00:47:30,330
happening in the next twelve

615
00:47:30,330 --> 00:47:32,330
to 18 months.

616
00:47:32,330 --> 00:47:34,330
>> So these are things that we

617
00:47:34,330 --> 00:47:35,330
need to have done that we just

618
00:47:35,330 --> 00:47:36,330
haven't had done previously.

619
00:47:36,330 --> 00:47:37,330
Essentially then.

620
00:47:37,330 --> 00:47:39,330
>> Well, I think on the project

621
00:47:39,330 --> 00:47:40,330
development side, I think it's

622
00:47:40,330 --> 00:47:41,330
just, it frees up, Sam has

623
00:47:41,330 --> 00:47:42,330
to spend a lot of time.

624
00:47:42,330 --> 00:47:44,330
For instance,

625
00:47:44,330 --> 00:47:45,330
there's a project in Grass

626
00:47:45,330 --> 00:47:47,330
Valley we're looking

627
00:47:47,330 --> 00:47:49,330
at right now where he's having

628
00:47:49,330 --> 00:47:50,330
to spend a good chunk

629
00:47:50,330 --> 00:47:52,330
of his week on that. This

630
00:47:52,330 --> 00:47:53,330
person could free him up

631
00:47:53,330 --> 00:47:55,330
to focus on other areas. So,

632
00:47:55,330 --> 00:47:56,330
and then on the it side,

633
00:47:56,330 --> 00:47:58,330
I think it's more of a,

634
00:47:58,330 --> 00:47:59,330
rather than less reliance on

635
00:47:59,330 --> 00:48:01,330
our consultant. I think the

636
00:48:01,330 --> 00:48:03,330
consultant does become still

637
00:48:03,330 --> 00:48:04,330
part of our business. And now

638
00:48:04,330 --> 00:48:06,330
we've got that

639
00:48:06,330 --> 00:48:08,330
in house expertise, especially

640
00:48:08,330 --> 00:48:09,330
on the cybersecurity side,

641
00:48:09,330 --> 00:48:11,330
that protects our. So I think

642
00:48:11,330 --> 00:48:13,330
it's in the better.

643
00:48:13,330 --> 00:48:14,330
>> Interest

644
00:48:14,330 --> 00:48:16,330
of our great payers

645
00:48:16,330 --> 00:48:17,330
on the project development.

646
00:48:17,330 --> 00:48:19,330
Also, just as a reminder,

647
00:48:19,330 --> 00:48:20,330
director Ring, as I know you

648
00:48:20,330 --> 00:48:22,330
are new on the board, we've

649
00:48:22,330 --> 00:48:23,330
really just ramped up our

650
00:48:23,330 --> 00:48:24,330
programs

651
00:48:24,330 --> 00:48:26,330
in the last two years. And so

652
00:48:26,330 --> 00:48:27,330
even though we're going

653
00:48:27,330 --> 00:48:28,330
into our 6th year, we really

654
00:48:28,330 --> 00:48:29,330
haven't, you know,

655
00:48:29,330 --> 00:48:30,330
we've slowly rolled them out,

656
00:48:30,330 --> 00:48:32,330
and now it's just getting to

657
00:48:32,330 --> 00:48:33,330
the point where one person

658
00:48:33,330 --> 00:48:34,330
can't manage them anymore

659
00:48:34,330 --> 00:48:35,330
because we have increased our

660
00:48:35,330 --> 00:48:36,330
programs.

661
00:48:36,330 --> 00:48:37,330
>> You actually reminded me

662
00:48:37,330 --> 00:48:38,330
of another question. I have.

663
00:48:38,330 --> 00:48:39,330
Do we have a. So right now,

664
00:48:39,330 --> 00:48:41,330
we're in this budget. We are

665
00:48:41,330 --> 00:48:42,330
suggesting from go to go

666
00:48:42,330 --> 00:48:44,330
from 1% of our budget to 2%

667
00:48:44,330 --> 00:48:45,330
of our budget for programs. Do

668
00:48:45,330 --> 00:48:47,330
we have a goal percentage that

669
00:48:47,330 --> 00:48:48,330
we hit? We're looking

670
00:48:48,330 --> 00:48:50,330
to meet, like,

671
00:48:50,330 --> 00:48:51,330
are we expecting to get to 5%

672
00:48:51,330 --> 00:48:53,330
at some point in the future or

673
00:48:53,330 --> 00:48:54,330
there's just whatever we need

674
00:48:54,330 --> 00:48:55,330
to do. Whatever.

675
00:48:55,330 --> 00:48:57,330
>> Well, I think.

676
00:48:57,330 --> 00:48:58,330
>> Sounds right.

677
00:48:58,330 --> 00:49:00,330
>> Well, we look to see where

678
00:49:00,330 --> 00:49:01,330
the programs are going, how

679
00:49:01,330 --> 00:49:03,330
effective they are. I don't see

680
00:49:03,330 --> 00:49:04,330
it going past 2%, though.

681
00:49:04,330 --> 00:49:05,330
>> And it was 2 million last

682
00:49:05,330 --> 00:49:07,330
year. Initially, they had

683
00:49:07,330 --> 00:49:08,330
recommended. The first time we

684
00:49:08,330 --> 00:49:10,330
had our program roll out,

685
00:49:10,330 --> 00:49:11,330
there was a recommendation

686
00:49:11,330 --> 00:49:13,330
for 4 million, and the board

687
00:49:13,330 --> 00:49:14,330
felt that that that was too

688
00:49:14,330 --> 00:49:15,330
aggressive going out

689
00:49:15,330 --> 00:49:17,330
of the box, so we brought it

690
00:49:17,330 --> 00:49:18,330
down to 2 million. Actually,

691
00:49:18,330 --> 00:49:20,330
didn't we do the first year was

692
00:49:20,330 --> 00:49:22,330
like 1 million? Yeah. So we've

693
00:49:22,330 --> 00:49:23,330
just slowly, you know, got

694
00:49:23,330 --> 00:49:25,330
to the 4 million,

695
00:49:25,330 --> 00:49:26,330
which is where they,

696
00:49:26,330 --> 00:49:28,330
the citizens Advisory committee

697
00:49:28,330 --> 00:49:29,330
initially recommended us

698
00:49:29,330 --> 00:49:31,330
to be three years ago. We're

699
00:49:31,330 --> 00:49:32,330
just taking our time trying

700
00:49:32,330 --> 00:49:34,330
to be fiscally, you know,

701
00:49:34,330 --> 00:49:35,330
conservative and ensuring that

702
00:49:35,330 --> 00:49:36,330
we are investing

703
00:49:36,330 --> 00:49:38,330
in the right programs.

704
00:49:38,330 --> 00:49:39,330
>> Thanks.

705
00:49:39,330 --> 00:49:41,330
>> Any other questions or

706
00:49:41,330 --> 00:49:43,330
comments? With that said,

707
00:49:43,330 --> 00:49:45,330
any public comment, Madam

708
00:49:45,330 --> 00:49:47,330
Clerk?

709
00:49:47,330 --> 00:49:48,330
>> There are no comments at

710
00:49:48,330 --> 00:49:50,330
this time.

711
00:49:50,330 --> 00:49:51,330
>> I'll entertain a motion. Is

712
00:49:51,330 --> 00:49:52,330
there a motion to adopt the

713
00:49:52,330 --> 00:49:54,330
recommendations that staff have

714
00:49:54,330 --> 00:49:55,330
made that were on the. You had

715
00:49:55,330 --> 00:49:57,330
the presentation up. Could you

716
00:49:57,330 --> 00:49:59,330
please bring those that slide

717
00:49:59,330 --> 00:50:00,330
back up? Brad or Teresa?

718
00:50:00,330 --> 00:50:02,330
>> One moment,

719
00:50:02,330 --> 00:50:04,330
just so that we're clear.

720
00:50:04,330 --> 00:50:05,330
>> There were 6

721
00:50:05,330 --> 00:50:07,330
recommendations?

722
00:50:07,330 --> 00:50:09,330
>> Yes, 4 recommendations.

723
00:50:09,330 --> 00:50:10,330
>> All right,

724
00:50:10,330 --> 00:50:12,330
is there a motion approved?

725
00:50:12,330 --> 00:50:13,330
>> Staff recommendation.

726
00:50:13,330 --> 00:50:15,330
>> All right, it's been moved

727
00:50:15,330 --> 00:50:17,330
by Director Holmes. Is there a

728
00:50:17,330 --> 00:50:18,330
second?

729
00:50:18,330 --> 00:50:20,330
>> A second.

730
00:50:20,330 --> 00:50:21,330
>> Second by Director

731
00:50:21,330 --> 00:50:22,330
Peterson. Thank you very much.

732
00:50:22,330 --> 00:50:23,330
Any further discussion?

733
00:50:23,330 --> 00:50:24,330
Hearing none. Madam Clerk,

734
00:50:24,330 --> 00:50:25,330
please call a roll.

735
00:50:25,330 --> 00:50:27,330
>>[CALLING ROLL]

736
00:50:39,330 --> 00:50:40,330
>> Thank you. Let the record

737
00:50:40,330 --> 00:50:41,330
show the motion has been

738
00:50:41,330 --> 00:50:42,330
adopted unanimously. I just

739
00:50:42,330 --> 00:50:44,330
want to say that I'm very proud

740
00:50:44,330 --> 00:50:45,330
that we've been able

741
00:50:45,330 --> 00:50:46,330
to adopt a budget with 24.6

742
00:50:46,330 --> 00:50:48,330
million going into reserves. I

743
00:50:48,330 --> 00:50:49,330
think that's very prudent, you

744
00:50:49,330 --> 00:50:51,330
know, and that's also something

745
00:50:51,330 --> 00:50:52,330
that we've been growing

746
00:50:52,330 --> 00:50:54,330
over the years to make sure

747
00:50:54,330 --> 00:50:55,330
that we have that fiscal

748
00:50:55,330 --> 00:50:56,330
solvency, especially

749
00:50:56,330 --> 00:50:58,330
in times of, you know, when we

750
00:50:58,330 --> 00:50:59,330
have critical temperature

751
00:50:59,330 --> 00:51:00,330
changes where we're having

752
00:51:00,330 --> 00:51:01,330
to go out on the open market

753
00:51:01,330 --> 00:51:02,330
and purchase that power

754
00:51:02,330 --> 00:51:04,330
at such a high rate. So very,

755
00:51:04,330 --> 00:51:05,330
very glad to see that. And I

756
00:51:05,330 --> 00:51:06,330
want to continue to ensure that

757
00:51:06,330 --> 00:51:07,330
we put sufficient money. We do

758
00:51:07,330 --> 00:51:09,330
have a policy

759
00:51:09,330 --> 00:51:10,330
on our reserves,

760
00:51:10,330 --> 00:51:12,330
but very happy to see that

761
00:51:12,330 --> 00:51:13,330
24.6 million in the reserves,

762
00:51:13,330 --> 00:51:14,330
as opposed to enhancing

763
00:51:14,330 --> 00:51:16,330
programs even more, got

764
00:51:16,330 --> 00:51:17,330
to be fiscally prudent. So

765
00:51:17,330 --> 00:51:19,330
thank you very much. All right,

766
00:51:19,330 --> 00:51:21,330
next item

767
00:51:21,330 --> 00:51:22,330
on the agenda is the revised,

768
00:51:22,330 --> 00:51:23,330
second amended and restated

769
00:51:23,330 --> 00:51:25,330
JPA.

770
00:51:25,330 --> 00:51:27,330
>> Thank you, Madam Chair. We

771
00:51:27,330 --> 00:51:28,330
do have a short presentation

772
00:51:28,330 --> 00:51:30,330
on this. We have just a few

773
00:51:30,330 --> 00:51:31,330
updates and some action items

774
00:51:31,330 --> 00:51:33,330
out of this as well. So our

775
00:51:33,330 --> 00:51:34,330
general counsel, Patrick, will

776
00:51:34,330 --> 00:51:36,330
cover this.

777
00:51:36,330 --> 00:51:37,330
>> Good afternoon. So this is a

778
00:51:37,330 --> 00:51:39,330
matter that came to us. Skip

779
00:51:39,330 --> 00:51:41,330
to the next slide. This is a

780
00:51:41,330 --> 00:51:43,330
matter that we originally

781
00:51:43,330 --> 00:51:44,330
started, I believe, actually

782
00:51:44,330 --> 00:51:47,330
in October, but November, you

783
00:51:47,330 --> 00:51:49,330
adopted the amendment

784
00:51:49,330 --> 00:51:50,330
to start the amendment process

785
00:51:50,330 --> 00:51:52,330
to amend the JPA. And we did

786
00:51:52,330 --> 00:51:54,330
that basically

787
00:51:54,330 --> 00:51:55,330
for several reasons. One was

788
00:51:55,330 --> 00:51:57,330
to clean up the JPA, because

789
00:51:57,330 --> 00:51:59,330
over the years we've had new

790
00:51:59,330 --> 00:52:01,330
members, and it's kind of,

791
00:52:01,330 --> 00:52:02,330
with five amendments,

792
00:52:02,330 --> 00:52:04,330
it got kind of confusing,

793
00:52:04,330 --> 00:52:06,330
clunky to know exactly what's

794
00:52:06,330 --> 00:52:08,330
in the JPA. So we did a

795
00:52:08,330 --> 00:52:10,330
restated one

796
00:52:10,330 --> 00:52:13,330
with restating all the sections

797
00:52:13,330 --> 00:52:15,330
of the JPA. And the second

798
00:52:15,330 --> 00:52:17,330
thing was to deal

799
00:52:17,330 --> 00:52:19,330
with the issue

800
00:52:19,330 --> 00:52:21,433
of the future amendments

801
00:52:22,330 --> 00:52:24,330
to the JPA. Right now,

802
00:52:24,330 --> 00:52:26,330
the JPA requires that

803
00:52:26,330 --> 00:52:28,330
for any amendment,

804
00:52:28,330 --> 00:52:29,330
no matter how small,

805
00:52:29,330 --> 00:52:31,330
it requires a vote of each

806
00:52:31,330 --> 00:52:32,330
of the member agencies

807
00:52:32,330 --> 00:52:34,330
by resolution. So you need

808
00:52:34,330 --> 00:52:36,330
to take it back to your

809
00:52:36,330 --> 00:52:38,330
governing body and get a vote

810
00:52:38,330 --> 00:52:39,330
of your governing body,

811
00:52:39,330 --> 00:52:41,330
and we need to get, right now,

812
00:52:41,330 --> 00:52:43,330
ten. We have ten members. So

813
00:52:43,330 --> 00:52:44,330
the idea was to streamline it

814
00:52:44,330 --> 00:52:46,330
and just have the most

815
00:52:46,330 --> 00:52:48,330
important items actually have

816
00:52:48,330 --> 00:52:50,330
to go back to a vote

817
00:52:50,330 --> 00:52:52,330
of the member agencies,

818
00:52:52,330 --> 00:52:53,330
and then the rest

819
00:52:53,330 --> 00:52:55,330
of the items could be amended

820
00:52:55,330 --> 00:52:56,330
by the board

821
00:52:56,330 --> 00:52:58,330
by a two thirds vote. So that

822
00:52:58,330 --> 00:53:00,330
was what we were trying to do

823
00:53:00,330 --> 00:53:02,330
in the agreement. It would

824
00:53:02,330 --> 00:53:04,330
still require that our powers,

825
00:53:04,330 --> 00:53:06,433
our section four powers,

826
00:53:09,330 --> 00:53:12,330
would have to go back

827
00:53:13,330 --> 00:53:15,330
to the member agencies. We

828
00:53:15,330 --> 00:53:16,330
cannot change what we actually

829
00:53:16,330 --> 00:53:19,330
do or how we do it

830
00:53:19,330 --> 00:53:21,330
in that respect. It also

831
00:53:21,330 --> 00:53:23,330
required that anytime we

832
00:53:23,330 --> 00:53:24,330
expanded, added a new member,

833
00:53:24,330 --> 00:53:26,330
that it would still have

834
00:53:26,330 --> 00:53:27,330
to be approved by all ten

835
00:53:27,330 --> 00:53:29,330
members or however many there

836
00:53:29,330 --> 00:53:30,330
are at the time. So we did that

837
00:53:30,330 --> 00:53:32,330
in November, pursuant

838
00:53:32,330 --> 00:53:33,330
to our JPA, it requires a 30

839
00:53:33,330 --> 00:53:34,330
day notice going out

840
00:53:34,330 --> 00:53:36,330
to all the member agencies. We

841
00:53:36,330 --> 00:53:37,330
did that then in January and go

842
00:53:37,330 --> 00:53:39,330
to the next slide. We did

843
00:53:39,330 --> 00:53:40,330
approve the amended and

844
00:53:40,330 --> 00:53:42,330
restated second amendment

845
00:53:42,330 --> 00:53:44,330
to the JPA, and

846
00:53:44,330 --> 00:53:46,330
from there we sent it to each

847
00:53:46,330 --> 00:53:48,330
of the member agencies

848
00:53:48,330 --> 00:53:50,330
for approval via resolution.

849
00:53:50,330 --> 00:53:52,330
Eight approved it,

850
00:53:52,330 --> 00:53:53,330
but two member entities,

851
00:53:53,330 --> 00:53:55,330
the town of Loomis and the city

852
00:53:55,330 --> 00:53:57,330
of Rockland, had some issues

853
00:53:57,330 --> 00:54:00,330
with it. So that is why we are

854
00:54:00,330 --> 00:54:01,330
back here at this time,

855
00:54:01,330 --> 00:54:03,330
because we are not able

856
00:54:03,330 --> 00:54:05,330
to get all ten signatures. Go

857
00:54:05,330 --> 00:54:07,330
to the next slide. The city

858
00:54:07,330 --> 00:54:09,330
of Rockland was okay

859
00:54:09,330 --> 00:54:10,330
with all the changes,

860
00:54:10,330 --> 00:54:12,330
except they wanted

861
00:54:12,330 --> 00:54:14,330
to amend basically section 19

862
00:54:14,330 --> 00:54:16,330
to include,

863
00:54:16,330 --> 00:54:18,330
which is the amendment process

864
00:54:18,330 --> 00:54:20,330
to include that. Also, section

865
00:54:20,330 --> 00:54:21,330
14 would be the same in terms

866
00:54:21,330 --> 00:54:23,433
of if section 14 deals

867
00:54:25,330 --> 00:54:27,330
with the withdrawal

868
00:54:27,330 --> 00:54:29,330
of members, it allows a member

869
00:54:29,330 --> 00:54:31,330
to withdraw with notice, and

870
00:54:31,330 --> 00:54:33,330
they also must do an accounting

871
00:54:33,330 --> 00:54:35,330
and pay up

872
00:54:35,330 --> 00:54:38,330
on anything that they may be

873
00:54:38,330 --> 00:54:40,330
owed by the. By maybe owed

874
00:54:40,330 --> 00:54:43,330
to pioneer. They are concerned

875
00:54:43,330 --> 00:54:45,433
that section 14 language could

876
00:54:47,330 --> 00:54:50,330
be changed by the board that

877
00:54:50,330 --> 00:54:52,433
somehow would change that

878
00:54:55,330 --> 00:54:57,330
process and would not give them

879
00:54:57,330 --> 00:54:59,433
the power, I think,

880
00:55:00,330 --> 00:55:03,330
in the future to unilaterally

881
00:55:03,330 --> 00:55:05,330
withdraw if they wanted to,

882
00:55:05,330 --> 00:55:07,330
and that they did not want

883
00:55:07,330 --> 00:55:09,330
to see that. So we have added

884
00:55:09,330 --> 00:55:12,330
section 14A and B to the

885
00:55:12,330 --> 00:55:14,330
proposed restated JPA that's

886
00:55:14,330 --> 00:55:17,330
been before you today to

887
00:55:17,330 --> 00:55:19,330
address the issue that the city

888
00:55:19,330 --> 00:55:21,330
of Rockland had. So section 14A

889
00:55:21,330 --> 00:55:22,330
and B, if we wanted

890
00:55:22,330 --> 00:55:23,330
to change that language

891
00:55:23,330 --> 00:55:25,330
about the withdrawal process,

892
00:55:25,330 --> 00:55:27,330
would have to go back to each

893
00:55:27,330 --> 00:55:28,330
of the member agencies

894
00:55:28,330 --> 00:55:30,330
at that time.

895
00:55:31,330 --> 00:55:33,330
>> I just want to clarify, too,

896
00:55:33,330 --> 00:55:35,330
because this was when we

897
00:55:35,330 --> 00:55:37,330
initially were having this

898
00:55:37,330 --> 00:55:38,330
discussion,

899
00:55:38,330 --> 00:55:40,330
and we did have the opportunity

900
00:55:40,330 --> 00:55:41,330
to meet with member director

901
00:55:41,330 --> 00:55:42,330
Janda on this issue.

902
00:55:42,330 --> 00:55:44,330
Initially, there was some

903
00:55:44,330 --> 00:55:46,330
concern, and they said that,

904
00:55:46,330 --> 00:55:47,330
well, maybe if someone wanted

905
00:55:47,330 --> 00:55:49,330
to withdraw from the JPA,

906
00:55:49,330 --> 00:55:50,330
then we should all have

907
00:55:50,330 --> 00:55:52,330
to vote on that.

908
00:55:52,330 --> 00:55:53,330
But then when we brought it to

909
00:55:53,330 --> 00:55:55,330
their attention that that's not

910
00:55:55,330 --> 00:55:57,330
in anyone's best interest,

911
00:55:57,330 --> 00:55:58,330
to require all of us to have to

912
00:55:58,330 --> 00:56:00,330
approve whether or not someone

913
00:56:00,330 --> 00:56:01,330
withdraw that they quickly

914
00:56:01,330 --> 00:56:03,330
understood and simply said,

915
00:56:03,330 --> 00:56:04,330
okay, well, we're fine

916
00:56:04,330 --> 00:56:06,330
with that.

917
00:56:06,330 --> 00:56:07,330
But if this board wants

918
00:56:07,330 --> 00:56:08,330
to make a change

919
00:56:08,330 --> 00:56:10,330
to that section that deals

920
00:56:10,330 --> 00:56:11,330
with it, then any change

921
00:56:11,330 --> 00:56:12,330
to that section

922
00:56:12,330 --> 00:56:13,330
of the JPA would go back

923
00:56:13,330 --> 00:56:14,330
to all of us to ratify it. So

924
00:56:14,330 --> 00:56:16,330
if we wanted

925
00:56:16,330 --> 00:56:17,330
to change the process by which

926
00:56:17,330 --> 00:56:18,330
someone would withdraw, then

927
00:56:18,330 --> 00:56:20,330
that would require a full vote

928
00:56:20,330 --> 00:56:21,330
by the body. So it's just a

929
00:56:21,330 --> 00:56:22,330
clarifying change. And Don and

930
00:56:22,330 --> 00:56:24,330
I have been able to talk

931
00:56:24,330 --> 00:56:26,330
about it and are fine

932
00:56:26,330 --> 00:56:28,330
with that request.

933
00:56:28,330 --> 00:56:29,330
>> Although we don't have

934
00:56:29,330 --> 00:56:30,330
Rockland here today,

935
00:56:30,330 --> 00:56:32,330
they have seen this change

936
00:56:32,330 --> 00:56:33,330
in our agreement with it.

937
00:56:33,330 --> 00:56:35,330
>> Just wanted to clarify that

938
00:56:35,330 --> 00:56:37,330
because it is a little

939
00:56:37,330 --> 00:56:38,330
complicated and just to kind

940
00:56:38,330 --> 00:56:40,330
of did do that.

941
00:56:40,330 --> 00:56:41,330
>> There's history and how they

942
00:56:41,330 --> 00:56:43,330
handle it. The city of

943
00:56:43,330 --> 00:56:45,330
Rockland did meet and have a

944
00:56:45,330 --> 00:56:46,330
council meeting,

945
00:56:46,330 --> 00:56:48,330
and so they did discuss it

946
00:56:48,330 --> 00:56:50,330
in open session. All right.

947
00:56:50,330 --> 00:56:51,330
The other one was the town of

948
00:56:51,330 --> 00:56:53,330
Loomis, who have not taken it

949
00:56:53,330 --> 00:56:55,330
back to the. Back

950
00:56:55,330 --> 00:56:57,433
to their town council

951
00:56:58,330 --> 00:56:59,330
at this point.

952
00:56:59,330 --> 00:57:01,330
But I've had discussions with

953
00:57:01,330 --> 00:57:03,330
their. I guess he's called a

954
00:57:03,330 --> 00:57:05,330
town attorney, city attorney,

955
00:57:05,330 --> 00:57:07,330
essentially, Jeff Mitchell.

956
00:57:08,330 --> 00:57:10,330
And I know that Don and the

957
00:57:10,330 --> 00:57:12,330
chair has also had

958
00:57:12,330 --> 00:57:13,330
conversations with the city

959
00:57:13,330 --> 00:57:16,330
of Loomis about what they were

960
00:57:16,330 --> 00:57:18,330
looking for. Mister Mitchell

961
00:57:18,330 --> 00:57:20,330
provided a list of three

962
00:57:20,330 --> 00:57:22,330
different options that he would

963
00:57:22,330 --> 00:57:25,330
like to have seen. The first

964
00:57:25,330 --> 00:57:27,330
option was to. To basically

965
00:57:27,330 --> 00:57:29,330
include a significant number,

966
00:57:29,330 --> 00:57:32,330
like ten or twelve of the

967
00:57:32,330 --> 00:57:34,330
sections that would require a

968
00:57:34,330 --> 00:57:36,330
vote

969
00:57:37,330 --> 00:57:39,330
of all the member agencies. We

970
00:57:39,330 --> 00:57:41,330
were, at least I was

971
00:57:41,330 --> 00:57:44,330
of the opinion if we did that,

972
00:57:44,330 --> 00:57:46,330
we might as well not even do it

973
00:57:46,330 --> 00:57:48,330
because basically any change

974
00:57:48,330 --> 00:57:50,330
would have to go back

975
00:57:50,330 --> 00:57:52,330
to the.

976
00:57:52,330 --> 00:57:53,330
>> I'm going to just interrupt.

977
00:57:53,330 --> 00:57:55,330
I'm sorry. I think

978
00:57:55,330 --> 00:57:56,330
since we did have that meeting

979
00:57:56,330 --> 00:57:57,330
with Director Ring, the city

980
00:57:57,330 --> 00:57:59,330
manager, maybe just to. If you

981
00:57:59,330 --> 00:58:00,330
could just present the

982
00:58:00,330 --> 00:58:02,330
recommendation that came out of

983
00:58:02,330 --> 00:58:03,330
that meeting versus rehashing,

984
00:58:03,330 --> 00:58:05,330
because that's not

985
00:58:05,330 --> 00:58:06,330
before us today. Director Ring

986
00:58:06,330 --> 00:58:08,330
is now proposing this amendment

987
00:58:08,330 --> 00:58:09,330
that's up here. Because

988
00:58:09,330 --> 00:58:11,330
otherwise it might make things

989
00:58:11,330 --> 00:58:13,330
confusing and that's not

990
00:58:13,330 --> 00:58:14,330
on the table. I just want

991
00:58:14,330 --> 00:58:16,330
to cut out that their second

992
00:58:16,330 --> 00:58:18,330
suggestion was to get 60 days

993
00:58:18,330 --> 00:58:20,330
notice instead of the 30 days

994
00:58:20,330 --> 00:58:22,330
notice and we did meet

995
00:58:22,330 --> 00:58:23,330
with them. They're agreeable

996
00:58:23,330 --> 00:58:25,330
to 45 days notice. And that is

997
00:58:25,330 --> 00:58:27,330
what we've got

998
00:58:28,330 --> 00:58:30,330
in the proposal today. So those

999
00:58:30,330 --> 00:58:31,330
are the two main changes

1000
00:58:31,330 --> 00:58:33,330
in the proposal pursuant

1001
00:58:33,330 --> 00:58:35,330
to the discussions with

1002
00:58:35,330 --> 00:58:37,330
Rockland and the town of

1003
00:58:37,330 --> 00:58:38,330
Loomis. Next slide. And then

1004
00:58:38,330 --> 00:58:40,330
the last change we are making

1005
00:58:40,330 --> 00:58:42,330
on our own is as part of the

1006
00:58:42,330 --> 00:58:44,330
performance evaluation and the

1007
00:58:44,330 --> 00:58:46,330
employment with Mister

1008
00:58:46,330 --> 00:58:47,330
Eckerd, we changed his title

1009
00:58:47,330 --> 00:58:49,330
from executive director to

1010
00:58:49,330 --> 00:58:51,330
chief executive director

1011
00:58:51,330 --> 00:58:53,330
officer officer. I'm sorry.

1012
00:58:53,330 --> 00:58:55,330
And so we just needed

1013
00:58:55,330 --> 00:58:57,330
to clarify the JPA

1014
00:58:57,330 --> 00:59:01,330
to be his title. His duties are

1015
00:59:01,330 --> 00:59:04,633
exactly the same. It's just a

1016
00:59:05,330 --> 00:59:07,330
change in title, but his title

1017
00:59:07,330 --> 00:59:09,330
will now be officially chief

1018
00:59:09,330 --> 00:59:11,330
executive officer

1019
00:59:12,330 --> 00:59:14,330
in the future instead

1020
00:59:14,330 --> 00:59:16,330
of executive chairman director.

1021
00:59:16,330 --> 00:59:18,433
Next slide. So the

1022
00:59:19,330 --> 00:59:21,330
recommendation is to adopt the

1023
00:59:21,330 --> 00:59:23,330
resolution amending the

1024
00:59:23,330 --> 00:59:25,330
revised, second,

1025
00:59:25,330 --> 00:59:26,330
amended and restated JPA

1026
00:59:26,330 --> 00:59:28,330
with those changes I just laid

1027
00:59:28,330 --> 00:59:29,330
out by each

1028
00:59:29,330 --> 00:59:31,330
of the member agencies,

1029
00:59:31,330 --> 00:59:33,330
as well as the change

1030
00:59:33,330 --> 00:59:35,330
in title. We already gave the

1031
00:59:35,330 --> 00:59:37,330
30 day notice. This is still

1032
00:59:37,330 --> 00:59:38,330
part of the whole process that

1033
00:59:38,330 --> 00:59:40,330
we've gone through,

1034
00:59:40,330 --> 00:59:41,330
so there's not a need

1035
00:59:41,330 --> 00:59:42,330
to resubmit it for another 30

1036
00:59:42,330 --> 00:59:44,330
days notice to each

1037
00:59:44,330 --> 00:59:45,330
of the member agencies. Once we

1038
00:59:45,330 --> 00:59:47,330
adopt it, we will send it out

1039
00:59:47,330 --> 00:59:49,330
to each of the member agencies

1040
00:59:49,330 --> 00:59:50,330
for ratification via resolution

1041
00:59:50,330 --> 00:59:52,330
of the revised, second,

1042
00:59:52,330 --> 00:59:54,433
amended and restated JPA.

1043
00:59:55,330 --> 00:59:57,330
Once, hopefully we get all ten

1044
00:59:57,330 --> 00:59:59,330
to be in agreement,

1045
00:59:59,330 --> 01:00:01,330
then it can be executed

1046
01:00:01,330 --> 01:00:02,330
by the chair,

1047
01:00:02,330 --> 01:00:04,330
and then we will be

1048
01:00:04,330 --> 01:00:06,330
under the new revised, second,

1049
01:00:06,330 --> 01:00:08,330
amended and restated JPA. The

1050
01:00:08,330 --> 01:00:09,330
last JPA, essentially,

1051
01:00:09,330 --> 01:00:11,330
that we sent out is null and

1052
01:00:11,330 --> 01:00:13,330
void because we cannot get the

1053
01:00:13,330 --> 01:00:15,330
required signatures. I think

1054
01:00:15,330 --> 01:00:17,330
that's it. Is that one more

1055
01:00:17,330 --> 01:00:19,330
slide? Thank you. So does

1056
01:00:19,330 --> 01:00:21,433
anybody have any questions?

1057
01:00:24,330 --> 01:00:26,433
>> Thank you very much.

1058
01:00:28,330 --> 01:00:30,433
To summarize very quickly,

1059
01:00:31,330 --> 01:00:33,330
we've all seen the amendments

1060
01:00:33,330 --> 01:00:35,330
except for these two, and most

1061
01:00:35,330 --> 01:00:37,433
of our jurisdictions have

1062
01:00:38,330 --> 01:00:40,330
already voted

1063
01:00:40,330 --> 01:00:42,330
on the initial amendments.

1064
01:00:42,330 --> 01:00:44,330
We're going to have

1065
01:00:44,330 --> 01:00:45,330
to go back and ask

1066
01:00:45,330 --> 01:00:47,330
for their vote again, because

1067
01:00:47,330 --> 01:00:48,330
we now have two additional

1068
01:00:48,330 --> 01:00:50,330
amendments,

1069
01:00:50,330 --> 01:00:51,330
should this board vote

1070
01:00:51,330 --> 01:00:53,330
to include those in the round

1071
01:00:53,330 --> 01:00:54,330
of amendments. So, again, the

1072
01:00:54,330 --> 01:00:56,330
first one is just stating that

1073
01:00:56,330 --> 01:00:57,330
if the board were

1074
01:00:57,330 --> 01:00:59,330
to make a change

1075
01:00:59,330 --> 01:01:01,330
to the section that deals

1076
01:01:01,330 --> 01:01:03,330
with the process

1077
01:01:03,330 --> 01:01:05,330
of withdrawing,

1078
01:01:06,330 --> 01:01:07,330
that that would have to go

1079
01:01:07,330 --> 01:01:08,330
before all of us. And the

1080
01:01:08,330 --> 01:01:10,330
second would be changing the

1081
01:01:10,330 --> 01:01:12,330
number of days notice

1082
01:01:12,330 --> 01:01:13,330
for change from 30 days to 45

1083
01:01:13,330 --> 01:01:15,330
days. And again, Don and I had

1084
01:01:15,330 --> 01:01:17,330
the opportunity to meet with

1085
01:01:17,330 --> 01:01:18,330
Director Ring and his city

1086
01:01:18,330 --> 01:01:20,330
manager to talk

1087
01:01:20,330 --> 01:01:22,330
about that and felt that 45

1088
01:01:22,330 --> 01:01:24,330
days was reasonable. Anything

1089
01:01:24,330 --> 01:01:26,330
longer makes it difficult

1090
01:01:26,330 --> 01:01:27,330
for us

1091
01:01:27,330 --> 01:01:29,330
in the immediate future,

1092
01:01:29,330 --> 01:01:31,330
given that we're expanding,

1093
01:01:31,330 --> 01:01:33,330
and so we don't want

1094
01:01:33,330 --> 01:01:35,330
to push that off because we

1095
01:01:35,330 --> 01:01:38,330
only meet once a month. I am

1096
01:01:38,330 --> 01:01:40,330
in support

1097
01:01:40,330 --> 01:01:42,330
of those two recommendations,

1098
01:01:42,330 --> 01:01:44,330
and I'd like to open this up.

1099
01:01:44,330 --> 01:01:45,330
If there are any questions or

1100
01:01:45,330 --> 01:01:46,330
comments.

1101
01:01:46,330 --> 01:01:47,330
>> I just want to point out,

1102
01:01:47,330 --> 01:01:48,330
I think it's reasonable for

1103
01:01:48,330 --> 01:01:49,330
Loomis, too. Loomis only meets

1104
01:01:49,330 --> 01:01:50,330
once a month, too,

1105
01:01:50,330 --> 01:01:51,330
and that was part

1106
01:01:51,330 --> 01:01:52,330
of their issue with the 30

1107
01:01:52,330 --> 01:01:53,330
days.

1108
01:01:53,330 --> 01:01:54,330
>> I have a clarification

1109
01:01:54,330 --> 01:01:55,330
question. I don't know if it's

1110
01:01:55,330 --> 01:01:56,330
my brain or not. Back

1111
01:01:56,330 --> 01:01:57,330
on the first slide. Way back.

1112
01:01:57,330 --> 01:01:58,330
I'm just trying to understand

1113
01:01:58,330 --> 01:01:59,330
something that wasn't making

1114
01:01:59,330 --> 01:02:00,330
sense to me right there. So

1115
01:02:00,330 --> 01:02:02,330
administrative.

1116
01:02:02,330 --> 01:02:03,330
Let's see. Okay, so section

1117
01:02:03,330 --> 01:02:05,330
19, advance notice

1118
01:02:05,330 --> 01:02:07,330
to each member agency

1119
01:02:07,330 --> 01:02:08,330
before board votes. Two thirds

1120
01:02:08,330 --> 01:02:09,330
vote by the pioneer board

1121
01:02:09,330 --> 01:02:11,330
to amend the JPA.

1122
01:02:11,330 --> 01:02:13,330
>> Correct.

1123
01:02:13,330 --> 01:02:15,330
>> But then it says

1124
01:02:15,330 --> 01:02:17,330
underneath must be approved

1125
01:02:17,330 --> 01:02:20,330
by resolution, by every member

1126
01:02:22,330 --> 01:02:23,330
so does that mean that it takes

1127
01:02:23,330 --> 01:02:26,330
two thirds of this board

1128
01:02:26,330 --> 01:02:27,330
to then send it

1129
01:02:27,330 --> 01:02:29,330
to every member

1130
01:02:29,330 --> 01:02:30,330
to approve it?

1131
01:02:30,330 --> 01:02:31,330
>> Yeah. And then we need all

1132
01:02:31,330 --> 01:02:33,330
ten.

1133
01:02:33,330 --> 01:02:35,330
>> So it still goes back

1134
01:02:35,330 --> 01:02:37,330
to every member

1135
01:02:37,330 --> 01:02:39,330
for every amendment.

1136
01:02:39,330 --> 01:02:40,330
>> Well, that's why we wanted

1137
01:02:40,330 --> 01:02:42,330
to streamline it. Yeah, that's

1138
01:02:42,330 --> 01:02:44,330
why we're streaming. Yes. So

1139
01:02:44,330 --> 01:02:46,330
we're streamlining that process

1140
01:02:46,330 --> 01:02:47,330
because every single.

1141
01:02:47,330 --> 01:02:49,330
>> Yeah, that's the current

1142
01:02:49,330 --> 01:02:51,330
process. The new process will

1143
01:02:51,330 --> 01:02:53,330
give the 45 days I was stuck

1144
01:02:53,330 --> 01:02:54,330
on.

1145
01:02:54,330 --> 01:02:56,330
>> No wonder we're changing.

1146
01:02:56,330 --> 01:02:58,330
>> That's exactly right because

1147
01:02:58,330 --> 01:03:00,330
it's a lot of work.

1148
01:03:00,330 --> 01:03:02,330
>> Expand the notice. And the

1149
01:03:02,330 --> 01:03:03,330
board can enact except

1150
01:03:03,330 --> 01:03:05,330
for those few exceptions.

1151
01:03:05,330 --> 01:03:07,330
>> Yes.

1152
01:03:07,330 --> 01:03:09,330
>> In section 414 and add a new

1153
01:03:09,330 --> 01:03:11,330
member.

1154
01:03:11,330 --> 01:03:13,330
>> Thank you for that.

1155
01:03:13,330 --> 01:03:16,330
>> Can I make one comment?

1156
01:03:17,330 --> 01:03:19,330
>> Sure.

1157
01:03:19,330 --> 01:03:22,330
>> When this first all came

1158
01:03:22,330 --> 01:03:24,330
to my attention, mostly it was

1159
01:03:24,330 --> 01:03:25,330
our legal counsel who looked

1160
01:03:25,330 --> 01:03:28,330
at it, and so he was the one

1161
01:03:28,330 --> 01:03:30,330
who brought his concerns to me

1162
01:03:30,330 --> 01:03:31,330
with it, which is then I became

1163
01:03:31,330 --> 01:03:33,330
concerned. And so,

1164
01:03:33,330 --> 01:03:35,330
so I would just like to advise

1165
01:03:35,330 --> 01:03:37,330
that you all send it back

1166
01:03:37,330 --> 01:03:39,330
to your legal counsel to look

1167
01:03:39,330 --> 01:03:41,330
at before you consider a new

1168
01:03:41,330 --> 01:03:43,330
adoption but there's something

1169
01:03:43,330 --> 01:03:45,330
else I can say.

1170
01:03:45,330 --> 01:03:47,330
>> On that point,

1171
01:03:47,330 --> 01:03:49,433
one thing I've learned,

1172
01:03:57,330 --> 01:03:58,330
of course, I'm not going to be

1173
01:03:58,330 --> 01:04:00,330
your general counsel here

1174
01:04:00,330 --> 01:04:01,330
shortly, but one thing I've

1175
01:04:01,330 --> 01:04:03,330
learned is I would contact,

1176
01:04:03,330 --> 01:04:04,330
because I know most

1177
01:04:04,330 --> 01:04:06,330
of the city attorneys, so I

1178
01:04:06,330 --> 01:04:07,330
would contact and make sure

1179
01:04:07,330 --> 01:04:09,330
they're on board too,

1180
01:04:09,330 --> 01:04:11,330
at the beginning

1181
01:04:11,330 --> 01:04:12,330
of the process.

1182
01:04:12,330 --> 01:04:13,330
>> And the other comment I want

1183
01:04:13,330 --> 01:04:15,330
to make is that we are, this is

1184
01:04:15,330 --> 01:04:16,330
greatly expanding the powers

1185
01:04:16,330 --> 01:04:18,330
and the role of this board.

1186
01:04:18,330 --> 01:04:19,330
This does. And I think that as

1187
01:04:19,330 --> 01:04:21,330
we grow,

1188
01:04:21,330 --> 01:04:23,330
that is when we have a giant

1189
01:04:23,330 --> 01:04:25,330
board, it kind

1190
01:04:25,330 --> 01:04:27,330
of reduces the risk

1191
01:04:27,330 --> 01:04:28,330
of just a couple of bad actors

1192
01:04:28,330 --> 01:04:30,330
in the board acting. So I think

1193
01:04:30,330 --> 01:04:31,330
as we get bigger,

1194
01:04:31,330 --> 01:04:33,330
this is not a terrible idea,

1195
01:04:33,330 --> 01:04:35,330
which.

1196
01:04:35,330 --> 01:04:37,330
>> We're actually planning

1197
01:04:37,330 --> 01:04:38,330
to do. We've got several

1198
01:04:38,330 --> 01:04:40,330
expansions that are.

1199
01:04:40,330 --> 01:04:43,330
>> I just want us all

1200
01:04:43,330 --> 01:04:45,330
to be aware of what we're

1201
01:04:45,330 --> 01:04:47,330
actually doing here. And so I'm

1202
01:04:47,330 --> 01:04:48,330
sure you are sort

1203
01:04:48,330 --> 01:04:50,330
of state it. Yeah. But, yeah,

1204
01:04:50,330 --> 01:04:52,330
as we get bigger, I think it's

1205
01:04:52,330 --> 01:04:54,433
very difficult because we'll

1206
01:04:56,330 --> 01:04:57,330
have to go back to 1520

1207
01:04:57,330 --> 01:04:59,330
different organizations.

1208
01:05:01,330 --> 01:05:04,330
>> And get those and then they

1209
01:05:04,330 --> 01:05:06,330
don't get on the agenda. You

1210
01:05:06,330 --> 01:05:09,330
missed an agenda and then

1211
01:05:10,330 --> 01:05:11,330
you're 6 months

1212
01:05:11,330 --> 01:05:13,330
down the road trying to get all

1213
01:05:13,330 --> 01:05:14,330
those signatures done. Little

1214
01:05:14,330 --> 01:05:15,330
experience with that one.

1215
01:05:15,330 --> 01:05:16,330
>> Any other questions or

1216
01:05:16,330 --> 01:05:17,330
comments on this?

1217
01:05:17,330 --> 01:05:18,330
>> I would just make one more

1218
01:05:18,330 --> 01:05:19,330
comment would be upon approval.

1219
01:05:19,330 --> 01:05:20,330
Then staff will work

1220
01:05:20,330 --> 01:05:21,330
with your city managers

1221
01:05:21,330 --> 01:05:22,330
over the summer, and I would

1222
01:05:22,330 --> 01:05:23,330
hope then we could maybe wrap

1223
01:05:23,330 --> 01:05:25,330
this up by September.

1224
01:05:25,330 --> 01:05:27,330
>> Can I have a motion? Can we

1225
01:05:27,330 --> 01:05:28,330
put those back up, please,

1226
01:05:28,330 --> 01:05:30,330
Madam Clerk?

1227
01:05:30,330 --> 01:05:32,330
I'd like to just keep you

1228
01:05:32,330 --> 01:05:34,330
on your toes, Teresa.

1229
01:05:34,330 --> 01:05:36,330
>> There we go. All right,

1230
01:05:36,330 --> 01:05:39,330
so do I have a recommendation?

1231
01:05:39,330 --> 01:05:43,233
I mean, do I have a motion?

1232
01:05:44,330 --> 01:05:47,330
>> I'll move that we support

1233
01:05:47,330 --> 01:05:49,330
staff's recommendations.

1234
01:05:50,330 --> 01:05:51,330
>> I'll second.

1235
01:05:51,330 --> 01:05:53,330
>> It's been moved and

1236
01:05:53,330 --> 01:05:55,330
seconded. Any further

1237
01:05:56,330 --> 01:05:57,330
discussion? Any public comment,

1238
01:05:57,330 --> 01:05:59,330
Madam clerk?

1239
01:06:00,330 --> 01:06:02,330
>> There are no comments

1240
01:06:02,330 --> 01:06:04,330
at this time.

1241
01:06:04,330 --> 01:06:06,433
>> Thank you very much.

1242
01:06:07,330 --> 01:06:09,433
Appreciate that. Okay, no

1243
01:06:10,330 --> 01:06:12,330
further discussion. Madam

1244
01:06:12,330 --> 01:06:13,330
Clerk, please call a roll on

1245
01:06:13,330 --> 01:06:14,330
the motion.

1246
01:06:14,330 --> 01:06:16,330
>>[CALLING ROLL]

1247
01:06:38,330 --> 01:06:39,330
>> Let the record show the

1248
01:06:39,330 --> 01:06:40,330
motion has been adopted

1249
01:06:40,330 --> 01:06:41,330
unanimously. Thank you very

1250
01:06:41,330 --> 01:06:42,330
much. And look for for the JPA

1251
01:06:42,330 --> 01:06:44,330
on your next upcoming agenda

1252
01:06:44,330 --> 01:06:45,330
for each of you then. So thank

1253
01:06:45,330 --> 01:06:47,330
you so much. All right,

1254
01:06:47,330 --> 01:06:48,330
so moving right along,

1255
01:06:48,330 --> 01:06:50,330
we have a presentation.

1256
01:06:50,330 --> 01:06:51,330
>> Thank you, Chair. Good

1257
01:06:51,330 --> 01:06:53,330
afternoon, fellow directors.

1258
01:06:53,330 --> 01:06:54,330
So you're done

1259
01:06:54,330 --> 01:06:55,330
with the action items? You can

1260
01:06:55,330 --> 01:06:57,330
relax. I thought we maybe.

1261
01:06:57,330 --> 01:06:58,330
Thought we'd do something a

1262
01:06:58,330 --> 01:07:00,330
little different. We've been

1263
01:07:00,330 --> 01:07:02,330
making a lot of decisions over

1264
01:07:02,330 --> 01:07:03,330
the last six months and maybe

1265
01:07:03,330 --> 01:07:05,330
take a break and hear

1266
01:07:05,330 --> 01:07:06,330
from a guest speaker

1267
01:07:06,330 --> 01:07:08,330
with a lot of knowledge on

1268
01:07:08,330 --> 01:07:09,330
issues that we all care about.

1269
01:07:09,330 --> 01:07:11,330
So I had the pleasure of

1270
01:07:11,330 --> 01:07:13,330
meeting our guest speaker last

1271
01:07:13,330 --> 01:07:14,330
month at California municipal

1272
01:07:14,330 --> 01:07:16,330
rates Symposium that was hosted

1273
01:07:16,330 --> 01:07:18,330
by Smud. And after 8 hours

1274
01:07:18,330 --> 01:07:20,330
of death by PowerPoint, our

1275
01:07:20,330 --> 01:07:22,330
guest speaker then presented.

1276
01:07:22,330 --> 01:07:24,330
And his candor was both

1277
01:07:24,330 --> 01:07:26,330
informative and really

1278
01:07:26,330 --> 01:07:28,330
entertaining. And I was hoping

1279
01:07:28,330 --> 01:07:30,330
that he could share that

1280
01:07:30,330 --> 01:07:31,330
with us today. And he has. I've

1281
01:07:31,330 --> 01:07:33,330
included his bio

1282
01:07:34,330 --> 01:07:36,330
in the staff report. But just

1283
01:07:36,330 --> 01:07:37,330
to cover a few highlights,

1284
01:07:37,330 --> 01:07:39,330
Doctor Ahmad Fareki has 45

1285
01:07:39,330 --> 01:07:41,330
years of consulting, teaching

1286
01:07:41,330 --> 01:07:43,330
and research experience and

1287
01:07:43,330 --> 01:07:45,330
rate design, load flexibility,

1288
01:07:45,330 --> 01:07:46,330
energy efficiency, demand

1289
01:07:46,330 --> 01:07:48,330
response, distributed energy

1290
01:07:48,330 --> 01:07:50,330
resources, demand forecasting,

1291
01:07:50,330 --> 01:07:52,330
decarbonization and

1292
01:07:52,330 --> 01:07:54,330
electrification. He has worked

1293
01:07:54,330 --> 01:07:56,330
for over 150 clients on five

1294
01:07:56,330 --> 01:07:58,330
continents and has testified or

1295
01:07:58,330 --> 01:07:59,330
appeared nearly 100 times

1296
01:07:59,330 --> 01:08:01,330
before regulatory bodies,

1297
01:08:01,330 --> 01:08:03,330
governments,

1298
01:08:04,330 --> 01:08:06,330
and legislative councils

1299
01:08:06,330 --> 01:08:08,433
on six continents. Doctor

1300
01:08:09,330 --> 01:08:11,433
Farooqi has taught economics

1301
01:08:15,330 --> 01:08:18,330
at San Jose State, UC Davis and

1302
01:08:18,330 --> 01:08:21,330
the University of Karachi, and

1303
01:08:21,330 --> 01:08:23,433
delivered guest lectures at

1304
01:08:24,330 --> 01:08:26,330
Carnegie Mellon, Harvard,

1305
01:08:26,330 --> 01:08:28,433
Idaho, MIT, New York,

1306
01:08:29,330 --> 01:08:31,330
northwestern, Rutgers, San

1307
01:08:31,330 --> 01:08:33,330
Francisco, Stanford, and UC

1308
01:08:33,330 --> 01:08:35,433
Berkeley. Really pleased to

1309
01:08:36,330 --> 01:08:38,330
have our guest speaker today.

1310
01:08:38,330 --> 01:08:39,330
And Doctor Frutkin, the floor

1311
01:08:39,330 --> 01:08:41,330
is yours.

1312
01:08:57,330 --> 01:08:59,330
>> Good to see you, all of you.

1313
01:08:59,330 --> 01:09:01,330
I hope I can be somewhat

1314
01:09:01,330 --> 01:09:03,330
interesting. I know it's just

1315
01:09:03,330 --> 01:09:05,330
post lunch. Some of the stupor

1316
01:09:05,330 --> 01:09:08,330
is probably beginning to set

1317
01:09:08,330 --> 01:09:10,330
in. I'm pretty certain this

1318
01:09:10,330 --> 01:09:13,330
topic is going to wake us all

1319
01:09:13,330 --> 01:09:16,330
up because it is a disturbing

1320
01:09:16,330 --> 01:09:18,330
reality of today,

1321
01:09:18,330 --> 01:09:20,330
the high cost of electricity.

1322
01:09:20,330 --> 01:09:23,330
And we hear a lot

1323
01:09:23,330 --> 01:09:25,330
about electrification is the

1324
01:09:25,330 --> 01:09:28,330
way to go. We hear

1325
01:09:28,330 --> 01:09:30,330
about climate change, we hear

1326
01:09:30,330 --> 01:09:32,330
about affordability, and

1327
01:09:32,330 --> 01:09:34,330
of course, we are in on here

1328
01:09:34,330 --> 01:09:36,330
in California. So the golden

1329
01:09:36,330 --> 01:09:38,330
state, right? We always lead

1330
01:09:38,330 --> 01:09:41,330
the country, it is said. And so

1331
01:09:41,330 --> 01:09:43,330
what I want

1332
01:09:43,330 --> 01:09:46,330
to do is explore some of those

1333
01:09:46,330 --> 01:09:48,330
assumptions that are widely

1334
01:09:48,330 --> 01:09:51,330
held and perhaps provide some

1335
01:09:51,330 --> 01:09:53,330
thoughts for you

1336
01:09:54,330 --> 01:09:56,330
to comment upon. What I will do

1337
01:09:56,330 --> 01:09:59,330
is. So I should plan

1338
01:09:59,330 --> 01:10:01,330
on talking for what, about 40

1339
01:10:01,330 --> 01:10:03,433
minutes or so, something

1340
01:10:04,330 --> 01:10:06,330
like that,

1341
01:10:07,330 --> 01:10:09,330
not seeing a clock. So I will

1342
01:10:09,330 --> 01:10:11,330
occasionally, one

1343
01:10:12,330 --> 01:10:15,330
of us will wait. We'll bring

1344
01:10:15,330 --> 01:10:17,330
the cane out. I

1345
01:10:17,330 --> 01:10:20,330
will need a hint or two because

1346
01:10:20,330 --> 01:10:21,330
I've been known to speak

1347
01:10:21,330 --> 01:10:23,330
for longer than needed. And

1348
01:10:23,330 --> 01:10:24,330
it's not just my wife who has

1349
01:10:24,330 --> 01:10:26,330
that view. All right,

1350
01:10:26,330 --> 01:10:28,330
so I think you're going

1351
01:10:28,330 --> 01:10:30,330
to put up the first slide.

1352
01:10:30,330 --> 01:10:32,330
There we go. And if you could

1353
01:10:32,330 --> 01:10:33,330
put that in full screen mode.

1354
01:10:33,330 --> 01:10:36,330
And there it is. Thank you so

1355
01:10:36,330 --> 01:10:39,330
much. Okay, so I was thinking

1356
01:10:39,330 --> 01:10:40,330
of what title to give it. So

1357
01:10:40,330 --> 01:10:42,330
the title I came up

1358
01:10:42,330 --> 01:10:45,330
with was how the Golden State

1359
01:10:45,330 --> 01:10:47,330
lost its way on the road

1360
01:10:47,330 --> 01:10:48,330
to electrification,

1361
01:10:48,330 --> 01:10:50,330
and happy you invited me

1362
01:10:50,330 --> 01:10:52,330
to present

1363
01:10:52,330 --> 01:10:54,330
on the summer solstice, which

1364
01:10:54,330 --> 01:10:56,433
makes it exceptionally unique

1365
01:10:57,330 --> 01:10:59,330
and memorable. We planned it

1366
01:10:59,330 --> 01:11:02,330
that way. I was thinking hard,

1367
01:11:02,330 --> 01:11:04,330
how did it come about

1368
01:11:04,330 --> 01:11:06,330
to be the 20 June? All right,

1369
01:11:06,330 --> 01:11:08,433
so as I mentioned,

1370
01:11:10,330 --> 01:11:12,433
electrification is a high

1371
01:11:13,330 --> 01:11:16,330
priority for the state. Two

1372
01:11:16,330 --> 01:11:18,330
technologies we are told hold

1373
01:11:18,330 --> 01:11:20,330
the keys

1374
01:11:20,330 --> 01:11:22,330
to electrifying homes,

1375
01:11:22,330 --> 01:11:23,330
heat pumps for maintaining a

1376
01:11:23,330 --> 01:11:25,330
comfortable temperature

1377
01:11:26,330 --> 01:11:30,330
at home both in the summer and

1378
01:11:30,330 --> 01:11:32,330
in the winter. What a

1379
01:11:32,330 --> 01:11:34,330
remarkable device. I first

1380
01:11:34,330 --> 01:11:38,233
heard of it when I was early

1381
01:11:39,330 --> 01:11:40,330
in my career in 1979. I said a

1382
01:11:40,330 --> 01:11:42,330
heat pump that provides cooling

1383
01:11:42,330 --> 01:11:43,330
I was working at the Electric

1384
01:11:43,330 --> 01:11:44,330
Power Research Institute, and

1385
01:11:44,330 --> 01:11:45,330
they said, yeah,

1386
01:11:45,330 --> 01:11:46,330
it takes the heat

1387
01:11:46,330 --> 01:11:48,330
from the outside and puts it

1388
01:11:48,330 --> 01:11:49,330
into your house. I said, in the

1389
01:11:49,330 --> 01:11:50,330
winter there is heat outside. I

1390
01:11:50,330 --> 01:11:51,330
said, yes, there is. And

1391
01:11:51,330 --> 01:11:52,330
in the summer, it does it

1392
01:11:52,330 --> 01:11:53,330
in reverse. It takes the heat

1393
01:11:53,330 --> 01:11:55,330
from inside. So that was 1979.

1394
01:11:55,330 --> 01:11:57,330
This is 2000. What, 24. Still a

1395
01:11:57,330 --> 01:11:58,330
novelty for most people. And

1396
01:11:58,330 --> 01:12:00,330
the average customer has no

1397
01:12:00,330 --> 01:12:02,330
clue what a heat pump is.

1398
01:12:02,330 --> 01:12:03,330
Everyone knows what an air

1399
01:12:03,330 --> 01:12:05,330
conditioner is.

1400
01:12:05,330 --> 01:12:07,330
But the state says,

1401
01:12:07,330 --> 01:12:08,330
if you're going to save

1402
01:12:08,330 --> 01:12:10,330
ourselves both here and abroad,

1403
01:12:10,330 --> 01:12:11,330
by which I mean

1404
01:12:11,330 --> 01:12:13,330
in the afterlife,

1405
01:12:13,330 --> 01:12:14,330
we need a heat pump. Do any of

1406
01:12:14,330 --> 01:12:16,330
you currently have a heat pump?

1407
01:12:16,330 --> 01:12:18,330
You do? Okay, well, the rest

1408
01:12:18,330 --> 01:12:20,330
of us don't know. That is so

1409
01:12:20,330 --> 01:12:23,330
true. That is so true. Some

1410
01:12:23,330 --> 01:12:25,330
of us might. So you pretty much

1411
01:12:25,330 --> 01:12:28,330
summed it up. I mean,

1412
01:12:28,330 --> 01:12:31,330
the reality is very, very few

1413
01:12:31,330 --> 01:12:34,330
people have a heat pump today.

1414
01:12:34,330 --> 01:12:36,330
But the state, as part

1415
01:12:36,330 --> 01:12:38,330
of the policy that Governor

1416
01:12:38,330 --> 01:12:40,330
Newsom has laid out,

1417
01:12:40,330 --> 01:12:42,330
going back to Jerry Brown and

1418
01:12:42,330 --> 01:12:44,330
others, is

1419
01:12:44,330 --> 01:12:46,330
to manage climate change. And

1420
01:12:46,330 --> 01:12:49,330
that's a key technology. It's

1421
01:12:49,330 --> 01:12:51,330
very expensive to buy,

1422
01:12:51,330 --> 01:12:53,330
very expensive to install.

1423
01:12:53,330 --> 01:12:55,330
Sometimes it needs a panel

1424
01:12:55,330 --> 01:12:57,330
upgrade,

1425
01:12:57,330 --> 01:12:59,330
and it's even more expensive to

1426
01:12:59,330 --> 01:13:02,330
operate unless you have solar

1427
01:13:02,330 --> 01:13:06,330
or unless you have a really low

1428
01:13:06,330 --> 01:13:08,330
rate

1429
01:13:08,330 --> 01:13:10,330
from some other utility than

1430
01:13:10,330 --> 01:13:12,330
Pacific Gas and electric

1431
01:13:12,330 --> 01:13:13,330
company, which I will focus

1432
01:13:13,330 --> 01:13:15,330
on because it serves 5 million

1433
01:13:15,330 --> 01:13:17,330
customers in the northern part

1434
01:13:17,330 --> 01:13:18,330
of the state, and those 5

1435
01:13:18,330 --> 01:13:20,330
million represent roughly,

1436
01:13:20,330 --> 01:13:22,330
what, 18 million people. So

1437
01:13:22,330 --> 01:13:25,330
besides heat pumps, the other

1438
01:13:25,330 --> 01:13:27,433
technology that is often

1439
01:13:28,330 --> 01:13:31,330
mentioned is EV's. And I saw a

1440
01:13:31,330 --> 01:13:33,330
lot of superchargers in this

1441
01:13:33,330 --> 01:13:35,330
area. I have one myself. You

1442
01:13:35,330 --> 01:13:37,330
have two, you told us so.

1443
01:13:37,330 --> 01:13:39,330
Certainly EV's are catching on

1444
01:13:39,330 --> 01:13:41,330
in California, but not in much

1445
01:13:41,330 --> 01:13:43,330
of the country.

1446
01:13:44,330 --> 01:13:46,433
But those two need

1447
01:13:47,330 --> 01:13:49,433
to be pushed hard

1448
01:13:50,330 --> 01:13:51,330
for electrification. Other

1449
01:13:51,330 --> 01:13:53,433
technologies include heat pumps

1450
01:13:55,330 --> 01:13:57,433
of water heating, induction

1451
01:13:58,330 --> 01:14:00,330
stoves, clothes dryers,

1452
01:14:00,330 --> 01:14:02,330
and electric spas

1453
01:14:03,330 --> 01:14:05,330
for those who indulge

1454
01:14:05,330 --> 01:14:06,330
in that luxury. Okay.

1455
01:14:06,330 --> 01:14:08,330
To accelerate electrification,

1456
01:14:08,330 --> 01:14:10,330
the state needs

1457
01:14:10,330 --> 01:14:11,330
to make electricity competitive

1458
01:14:11,330 --> 01:14:13,330
with natural gas,

1459
01:14:14,330 --> 01:14:16,330
which is the primary

1460
01:14:16,330 --> 01:14:18,330
alternative fuel, and

1461
01:14:18,330 --> 01:14:20,330
with gasoline

1462
01:14:20,330 --> 01:14:22,330
for transportation, that means

1463
01:14:22,330 --> 01:14:24,330
lowering the capital cost

1464
01:14:24,330 --> 01:14:26,330
of electric equipment,

1465
01:14:27,330 --> 01:14:29,330
for example, buying an electric

1466
01:14:29,330 --> 01:14:31,330
car or installing a heat pump.

1467
01:14:31,330 --> 01:14:33,330
Lower that cost, and

1468
01:14:33,330 --> 01:14:36,330
of course, lower the cost

1469
01:14:36,330 --> 01:14:38,433
of electricity for the

1470
01:14:39,330 --> 01:14:40,330
customers because it is not

1471
01:14:40,330 --> 01:14:42,330
just a capital cost decision.

1472
01:14:42,330 --> 01:14:44,330
These things last

1473
01:14:44,330 --> 01:14:45,330
for a while, and so it has to,

1474
01:14:45,330 --> 01:14:48,330
it has to save you money.

1475
01:14:48,330 --> 01:14:49,330
Otherwise, why would you do it?

1476
01:14:49,330 --> 01:14:52,330
Now there are some who will do

1477
01:14:52,330 --> 01:14:54,433
it because they want

1478
01:14:55,330 --> 01:14:58,330
to be green or because they

1479
01:14:58,330 --> 01:15:00,330
want to experiment or because

1480
01:15:00,330 --> 01:15:02,330
they are

1481
01:15:02,330 --> 01:15:04,433
in the energy sphere,

1482
01:15:05,330 --> 01:15:07,330
or they are physicists

1483
01:15:07,330 --> 01:15:10,330
by training with a lot

1484
01:15:10,330 --> 01:15:11,330
in the bank balance. So we have

1485
01:15:11,330 --> 01:15:13,330
a challenge because this state

1486
01:15:13,330 --> 01:15:14,330
is very expensive, labor

1487
01:15:14,330 --> 01:15:15,330
expensive,

1488
01:15:15,330 --> 01:15:17,330
the equipment is expensive. So

1489
01:15:17,330 --> 01:15:18,330
what is the state trying

1490
01:15:18,330 --> 01:15:20,330
to do? And you probably know

1491
01:15:20,330 --> 01:15:21,330
this. I'm just summarizing it.

1492
01:15:21,330 --> 01:15:23,330
The state, along

1493
01:15:23,330 --> 01:15:24,330
with the federal government, is

1494
01:15:24,330 --> 01:15:25,330
providing various financial

1495
01:15:25,330 --> 01:15:27,330
incentives in the form

1496
01:15:27,330 --> 01:15:28,330
of rebates, tax rebates that

1497
01:15:28,330 --> 01:15:29,330
lower the purchase and

1498
01:15:29,330 --> 01:15:31,330
installation cost of electric

1499
01:15:31,330 --> 01:15:33,330
technologies and eues. That's

1500
01:15:33,330 --> 01:15:34,330
great. I support it. However,

1501
01:15:34,330 --> 01:15:35,330
it is also doing something that

1502
01:15:35,330 --> 01:15:36,330
makes electrification

1503
01:15:36,330 --> 01:15:38,330
unaffordable, repeatedly

1504
01:15:38,330 --> 01:15:39,330
raising rates and pushing up

1505
01:15:39,330 --> 01:15:40,330
electric bills

1506
01:15:40,330 --> 01:15:41,330
to the breaking point. So how

1507
01:15:41,330 --> 01:15:43,330
do those two things coexist?

1508
01:15:43,330 --> 01:15:45,330
That's what we would. That's

1509
01:15:45,330 --> 01:15:46,330
correct. And it's a mystery

1510
01:15:46,330 --> 01:15:48,330
to me as a citizen

1511
01:15:48,330 --> 01:15:51,330
of the state, how a state so

1512
01:15:51,330 --> 01:15:54,330
smart and so big and so well

1513
01:15:54,330 --> 01:15:56,330
known to possibly be the

1514
01:15:56,330 --> 01:15:58,330
world's fifth largest economy

1515
01:15:58,330 --> 01:16:00,330
for a separate country,

1516
01:16:00,330 --> 01:16:01,330
how a state of this size

1517
01:16:01,330 --> 01:16:03,330
of nearly 40 million people can

1518
01:16:03,330 --> 01:16:06,330
be so down. I don't have any

1519
01:16:06,330 --> 01:16:09,633
easy answers. I will just raise

1520
01:16:11,330 --> 01:16:14,330
the questions and you will

1521
01:16:14,330 --> 01:16:16,330
provide perhaps some

1522
01:16:16,330 --> 01:16:18,330
of the answers because I'm

1523
01:16:18,330 --> 01:16:20,330
at a loss. I should mention,

1524
01:16:20,330 --> 01:16:22,330
I have lived in this state

1525
01:16:22,330 --> 01:16:25,330
since 1974. I came as a grad

1526
01:16:25,330 --> 01:16:26,330
student at UC Davis, liked it

1527
01:16:26,330 --> 01:16:28,330
so much I have stayed.

1528
01:16:28,330 --> 01:16:30,330
Unfortunately for us, for all

1529
01:16:30,330 --> 01:16:32,330
of us, both

1530
01:16:32,330 --> 01:16:35,330
in the room and not

1531
01:16:36,330 --> 01:16:39,330
in the room. California took

1532
01:16:40,330 --> 01:16:43,330
two wrong turns on the road

1533
01:16:43,330 --> 01:16:45,433
to electrification. Wrong turn

1534
01:16:46,330 --> 01:16:48,330
number one. It failed to rein

1535
01:16:48,330 --> 01:16:50,433
in rising electric rates,

1536
01:16:51,330 --> 01:16:54,633
which rose at a much faster

1537
01:16:55,330 --> 01:16:57,433
rate than charges electric

1538
01:16:59,330 --> 01:17:02,633
charges in the rest of the

1539
01:17:04,330 --> 01:17:07,330
country and way faster than the

1540
01:17:07,330 --> 01:17:09,330
rate of inflation,

1541
01:17:10,330 --> 01:17:11,330
unchecked rises in electric

1542
01:17:11,330 --> 01:17:12,330
rates that the legislature did

1543
01:17:12,330 --> 01:17:13,330
nothing to rein in,

1544
01:17:13,330 --> 01:17:14,330
that the governor did nothing

1545
01:17:14,330 --> 01:17:16,330
to rein in, that the public

1546
01:17:16,330 --> 01:17:18,330
Utilities Commission did

1547
01:17:18,330 --> 01:17:20,330
everything to approve and push

1548
01:17:20,330 --> 01:17:22,330
on to customers. It's a story

1549
01:17:22,330 --> 01:17:24,330
of corruption and greed. But I

1550
01:17:24,330 --> 01:17:26,330
don't have a movie yet. I think

1551
01:17:26,330 --> 01:17:27,330
there's a script here. Okay.

1552
01:17:27,330 --> 01:17:29,330
So it put a large share. Now,

1553
01:17:29,330 --> 01:17:31,330
whenever some disaster happens,

1554
01:17:31,330 --> 01:17:32,330
you have to blame somebody.

1555
01:17:32,330 --> 01:17:34,330
You have to point your finger

1556
01:17:34,330 --> 01:17:36,330
at somebody other than

1557
01:17:36,330 --> 01:17:38,330
yourself. So they put a large

1558
01:17:38,330 --> 01:17:39,330
share of the blame

1559
01:17:39,330 --> 01:17:41,330
on customers with solar panels

1560
01:17:41,330 --> 01:17:42,330
and replace net energy metering

1561
01:17:42,330 --> 01:17:43,330
with a net billing tariff. And

1562
01:17:43,330 --> 01:17:45,330
I will dive

1563
01:17:45,330 --> 01:17:46,330
into that shortly. And I should

1564
01:17:46,330 --> 01:17:47,330
tell you in full disclosure,

1565
01:17:47,330 --> 01:17:48,330
I am one of those people who

1566
01:17:48,330 --> 01:17:49,330
has solar panels. I live

1567
01:17:49,330 --> 01:17:50,330
in the East Bay, and my bills

1568
01:17:50,330 --> 01:17:51,330
were just rising and rising.

1569
01:17:51,330 --> 01:17:52,330
So after five years

1570
01:17:52,330 --> 01:17:53,330
of hesitation, I put solar.

1571
01:17:53,330 --> 01:17:55,330
And as I look back, I think

1572
01:17:55,330 --> 01:17:56,330
that's the best thing I've ever

1573
01:17:56,330 --> 01:17:57,330
done probably

1574
01:17:57,330 --> 01:17:59,330
in my entire life, to rein

1575
01:17:59,330 --> 01:18:00,330
in my energy bills. In 2016, I

1576
01:18:00,330 --> 01:18:01,330
did a massive whole house

1577
01:18:01,330 --> 01:18:03,330
energy upgrade short

1578
01:18:03,330 --> 01:18:05,330
of heat pumps. But I did

1579
01:18:05,330 --> 01:18:08,330
everything else the bills only

1580
01:18:08,330 --> 01:18:10,330
went down 25%. Then I put

1581
01:18:10,330 --> 01:18:11,330
in solar. And over the last,

1582
01:18:11,330 --> 01:18:13,330
since 2019, my bills finally

1583
01:18:13,330 --> 01:18:14,330
have gone down 85%. And

1584
01:18:14,330 --> 01:18:16,330
of course, then they're saying,

1585
01:18:16,330 --> 01:18:19,330
I am the reason why everyone's

1586
01:18:19,330 --> 01:18:21,330
rates are higher. I and 1.7

1587
01:18:21,330 --> 01:18:23,330
million other customers

1588
01:18:23,330 --> 01:18:25,330
in the state,

1589
01:18:25,330 --> 01:18:27,330
representing nearly 5 million

1590
01:18:28,330 --> 01:18:30,330
customers, are the reason why

1591
01:18:30,330 --> 01:18:32,330
rates are really high. Is not

1592
01:18:32,330 --> 01:18:33,330
the utilities, it is not the

1593
01:18:33,330 --> 01:18:35,330
PoC, it is not the governor,

1594
01:18:35,330 --> 01:18:37,330
it is not the legislature, it

1595
01:18:37,330 --> 01:18:39,330
is those beasts who have put

1596
01:18:39,330 --> 01:18:41,330
solar panels, ugly as they are,

1597
01:18:41,330 --> 01:18:43,330
on their roofs. Okay, so wrong

1598
01:18:43,330 --> 01:18:45,330
turn number two. This is more

1599
01:18:45,330 --> 01:18:46,330
recent. So the solar panel

1600
01:18:46,330 --> 01:18:49,330
debacle took place on April 15

1601
01:18:49,330 --> 01:18:51,330
of last year,

1602
01:18:51,330 --> 01:18:52,330
called net billing tariff. And

1603
01:18:52,330 --> 01:18:54,433
then they said, oh,

1604
01:18:55,330 --> 01:18:57,330
but that's only

1605
01:18:57,330 --> 01:18:59,330
for new customers. That's

1606
01:18:59,330 --> 01:19:02,330
for new solar customers. What

1607
01:19:02,330 --> 01:19:03,330
do we do to get at the existing

1608
01:19:03,330 --> 01:19:05,330
solar customers? And everyone

1609
01:19:05,330 --> 01:19:07,330
else was thrown

1610
01:19:07,330 --> 01:19:09,330
into the mix as well. We do the

1611
01:19:09,330 --> 01:19:11,330
shell game between fixed and

1612
01:19:11,330 --> 01:19:12,330
variable charges. Now, who ever

1613
01:19:12,330 --> 01:19:14,330
thought a shell game could be

1614
01:19:14,330 --> 01:19:16,330
so exciting

1615
01:19:16,330 --> 01:19:18,330
to be front page news in story

1616
01:19:18,330 --> 01:19:21,330
after story in the LA Times,

1617
01:19:21,330 --> 01:19:23,330
in the Sacramento Bee, in the

1618
01:19:23,330 --> 01:19:24,330
San Francisco Chronicle, even

1619
01:19:24,330 --> 01:19:27,330
in the Wall Street Journal, et

1620
01:19:27,330 --> 01:19:29,330
cetera, et cetera. Well, it

1621
01:19:29,330 --> 01:19:31,330
turned out to be that the state

1622
01:19:31,330 --> 01:19:33,330
didn't know,

1623
01:19:33,330 --> 01:19:34,330
but it touched a nerve. And the

1624
01:19:34,330 --> 01:19:36,330
idea was called income

1625
01:19:36,330 --> 01:19:37,330
graduated fixed charge, IGFC.

1626
01:19:37,330 --> 01:19:40,330
Now, you can easily change the

1627
01:19:40,330 --> 01:19:42,330
c to a u at the end,

1628
01:19:42,330 --> 01:19:44,330
and that's what it's all about.

1629
01:19:44,330 --> 01:19:46,330
Now, to make the change sound

1630
01:19:46,330 --> 01:19:48,330
equitable, it decided to make

1631
01:19:48,330 --> 01:19:49,330
the fixed charges a function

1632
01:19:49,330 --> 01:19:51,330
of income. So that was very

1633
01:19:51,330 --> 01:19:53,330
clever. It was politically

1634
01:19:53,330 --> 01:19:55,330
motivated because the professor

1635
01:19:55,330 --> 01:19:58,330
who first put it out, he didn't

1636
01:19:58,330 --> 01:20:00,330
have income graduation built

1637
01:20:00,330 --> 01:20:01,330
into it. And of course,

1638
01:20:01,330 --> 01:20:03,433
consumer advocates would have

1639
01:20:04,330 --> 01:20:06,330
opposed it. Like, there is a

1640
01:20:06,330 --> 01:20:08,330
group called turn, some

1641
01:20:08,330 --> 01:20:09,330
of you may have heard of it.

1642
01:20:09,330 --> 01:20:11,330
Turn has opposed fixed charges

1643
01:20:11,330 --> 01:20:13,330
of $3 a month, of $10 a month.

1644
01:20:13,330 --> 01:20:15,330
Legislature approved dollar ten

1645
01:20:15,330 --> 01:20:17,330
a month. The PUC still couldn't

1646
01:20:17,330 --> 01:20:18,330
even put in a three dollar

1647
01:20:18,330 --> 01:20:20,330
fixed charge because turn was

1648
01:20:20,330 --> 01:20:22,330
the voice that was always

1649
01:20:22,330 --> 01:20:24,330
negative. So when this idea was

1650
01:20:24,330 --> 01:20:26,330
floated

1651
01:20:26,330 --> 01:20:28,330
with the fixed charges, I

1652
01:20:28,330 --> 01:20:29,330
thought, this will die

1653
01:20:29,330 --> 01:20:31,330
immediately because turn would

1654
01:20:31,330 --> 01:20:33,330
opposed it. Well, what I forgot

1655
01:20:33,330 --> 01:20:35,330
was that the idea,

1656
01:20:35,330 --> 01:20:36,330
as originally proposed,

1657
01:20:36,330 --> 01:20:38,330
was going to be modified

1658
01:20:38,330 --> 01:20:40,330
to make it palatable to turn.

1659
01:20:40,330 --> 01:20:43,330
And we'll get into that

1660
01:20:43,330 --> 01:20:45,330
in our discussion. So this is a

1661
01:20:45,330 --> 01:20:46,330
story of complex political

1662
01:20:46,330 --> 01:20:48,330
maneuvers and intrigues,

1663
01:20:48,330 --> 01:20:50,330
and I really think Matt Damon

1664
01:20:50,330 --> 01:20:52,330
would be well adopted to, I

1665
01:20:52,330 --> 01:20:53,330
don't know what role he would

1666
01:20:53,330 --> 01:20:55,330
play. Okay.

1667
01:20:55,330 --> 01:20:56,330
In the late 1980s,

1668
01:20:56,330 --> 01:20:58,330
California's rates began

1669
01:20:58,330 --> 01:21:00,330
to rise above the US average.

1670
01:21:00,330 --> 01:21:01,330
In 1979, they were

1671
01:21:01,330 --> 01:21:03,330
about the same. That's the year

1672
01:21:03,330 --> 01:21:05,330
my career began. They were

1673
01:21:05,330 --> 01:21:06,330
about the same. And ever

1674
01:21:06,330 --> 01:21:08,330
since then,

1675
01:21:08,330 --> 01:21:10,330
they have diverged. And so I

1676
01:21:10,330 --> 01:21:12,330
retired two years ago. And

1677
01:21:12,330 --> 01:21:13,330
somebody said to me, so does it

1678
01:21:13,330 --> 01:21:15,330
now mean they will start coming

1679
01:21:15,330 --> 01:21:17,330
down? People, you know,

1680
01:21:17,330 --> 01:21:18,330
you have

1681
01:21:18,330 --> 01:21:20,330
to admire their bluntness. So

1682
01:21:20,330 --> 01:21:22,330
the US is the blue line and

1683
01:21:22,330 --> 01:21:24,330
California. And by the way,

1684
01:21:24,330 --> 01:21:26,330
California here includes all

1685
01:21:26,330 --> 01:21:28,330
of California, not just PG and

1686
01:21:28,330 --> 01:21:30,330
e. So this is much lower than

1687
01:21:30,330 --> 01:21:32,330
what you would see if it was

1688
01:21:32,330 --> 01:21:33,330
just PG and E. And I'll show

1689
01:21:33,330 --> 01:21:35,330
you shortly the details

1690
01:21:35,330 --> 01:21:37,330
of PG and E, much of which you

1691
01:21:37,330 --> 01:21:39,330
probably have seen. Okay, so

1692
01:21:39,330 --> 01:21:41,330
now we enter into the halls

1693
01:21:41,330 --> 01:21:42,330
of power. It used to be at 77

1694
01:21:42,330 --> 01:21:45,330
Beale street. I'm sure some

1695
01:21:45,330 --> 01:21:46,330
of you have seen that building.

1696
01:21:46,330 --> 01:21:48,330
And the commission is located

1697
01:21:48,330 --> 01:21:50,330
at 505 van Ness. So

1698
01:21:50,330 --> 01:21:52,330
between those two, a lot

1699
01:21:52,330 --> 01:21:54,330
of underground lines. And

1700
01:21:54,330 --> 01:21:56,330
that's how decisions were made.

1701
01:21:56,330 --> 01:21:58,330
It was known as the revolving

1702
01:21:58,330 --> 01:22:00,330
door policy between

1703
01:22:00,330 --> 01:22:02,330
commissioners and utility

1704
01:22:02,330 --> 01:22:03,330
executives. So they serve 5.5

1705
01:22:03,330 --> 01:22:05,330
million customers

1706
01:22:06,330 --> 01:22:07,330
in the northern part

1707
01:22:07,330 --> 01:22:09,330
of the state. With the consent

1708
01:22:09,330 --> 01:22:11,330
of the commission, they have

1709
01:22:11,330 --> 01:22:12,330
more than doubled their

1710
01:22:12,330 --> 01:22:14,330
electric rates

1711
01:22:14,330 --> 01:22:16,330
over the past decade,

1712
01:22:16,330 --> 01:22:18,330
exceeding the increases

1713
01:22:18,330 --> 01:22:20,330
of any other utility

1714
01:22:20,330 --> 01:22:22,330
on the planet. And I did a lot

1715
01:22:22,330 --> 01:22:23,330
of consulting around the globe.

1716
01:22:23,330 --> 01:22:24,330
I've shared this news as it

1717
01:22:24,330 --> 01:22:25,330
unfolds. And utilities

1718
01:22:25,330 --> 01:22:27,330
everywhere are as shocked as

1719
01:22:27,330 --> 01:22:28,330
are people living

1720
01:22:28,330 --> 01:22:30,330
in this state. How can they get

1721
01:22:30,330 --> 01:22:32,330
away with it,

1722
01:22:32,330 --> 01:22:33,330
is what everyone says.

1723
01:22:33,330 --> 01:22:34,330
Especially a utility that has

1724
01:22:34,330 --> 01:22:36,330
had a series

1725
01:22:36,330 --> 01:22:38,330
of well publicized disasters.

1726
01:22:38,330 --> 01:22:40,330
The PUC keeps

1727
01:22:40,330 --> 01:22:42,330
on approving them. So

1728
01:22:42,330 --> 01:22:43,330
for those of us who drive an EV

1729
01:22:43,330 --> 01:22:45,330
and who live

1730
01:22:45,330 --> 01:22:47,330
in the pg and e service area,

1731
01:22:47,330 --> 01:22:48,330
a rate that appeals

1732
01:22:48,330 --> 01:22:50,330
to many is called EV2A.

1733
01:22:50,330 --> 01:22:52,330
That's not a name that you

1734
01:22:52,330 --> 01:22:54,330
would see

1735
01:22:54,330 --> 01:22:56,330
for any other product. But

1736
01:22:56,330 --> 01:22:57,330
for our industry, where jargon

1737
01:22:57,330 --> 01:22:59,330
abounds, that is the name

1738
01:22:59,330 --> 01:23:01,330
of the rate. EV2A. The

1739
01:23:01,330 --> 01:23:03,330
off peak rate in this is thirty

1740
01:23:03,330 --> 01:23:05,330
five cents a kilowatt hour

1741
01:23:05,330 --> 01:23:07,330
today is double what it was

1742
01:23:07,330 --> 01:23:09,330
just five years ago when I

1743
01:23:09,330 --> 01:23:11,330
bought my car. It's doubled

1744
01:23:11,330 --> 01:23:14,330
in five years. At $0.35, it

1745
01:23:14,330 --> 01:23:16,330
exceeds the peak rate

1746
01:23:16,330 --> 01:23:18,330
of most utilities

1747
01:23:18,330 --> 01:23:20,330
around the country. This is the

1748
01:23:20,330 --> 01:23:21,330
lowest and it exceeds their

1749
01:23:21,330 --> 01:23:23,330
highest. So this is how the

1750
01:23:23,330 --> 01:23:26,330
world was turned upside down.

1751
01:23:26,330 --> 01:23:27,330
Nobody has taken them

1752
01:23:27,330 --> 01:23:29,330
to task. Nobody has calibrated

1753
01:23:29,330 --> 01:23:31,330
their numbers against others

1754
01:23:31,330 --> 01:23:33,330
because they say,

1755
01:23:33,330 --> 01:23:35,330
we are unique and different.

1756
01:23:35,330 --> 01:23:37,330
You could say this is PG E's

1757
01:23:37,330 --> 01:23:39,330
exceptionalism or the PUC's

1758
01:23:39,330 --> 01:23:41,330
exceptionalism. California sets

1759
01:23:41,330 --> 01:23:43,330
the rules for everyone else.

1760
01:23:43,330 --> 01:23:45,330
And a few others are saying,

1761
01:23:45,330 --> 01:23:47,330
hey, if California can charge

1762
01:23:47,330 --> 01:23:49,330
that, maybe I should raise my

1763
01:23:49,330 --> 01:23:51,330
rates too. They're giving the

1764
01:23:51,330 --> 01:23:52,330
wrong incentives to utilities

1765
01:23:52,330 --> 01:23:54,330
and commissions elsewhere. How

1766
01:23:54,330 --> 01:23:56,330
much would you save if you

1767
01:23:56,330 --> 01:23:58,330
bought a Tesla, if you're

1768
01:23:58,330 --> 01:23:59,330
in the market for a Tesla

1769
01:23:59,330 --> 01:24:01,330
today, or an EV that gets,

1770
01:24:01,330 --> 01:24:02,330
let's say, 4 miles/kw hour,

1771
01:24:02,330 --> 01:24:04,330
compare that to an internal

1772
01:24:04,330 --> 01:24:06,330
combustion engine vehicle,

1773
01:24:06,330 --> 01:24:08,330
otherwise known as a gasoline

1774
01:24:08,330 --> 01:24:10,330
car.

1775
01:24:10,330 --> 01:24:11,330
But that's the jargon they use,

1776
01:24:11,330 --> 01:24:13,330
that gets 45 miles per gallon,

1777
01:24:13,330 --> 01:24:14,330
you're not going

1778
01:24:14,330 --> 01:24:16,330
to save a whole lot. Savings

1779
01:24:16,330 --> 01:24:17,330
are disappearing very fast.

1780
01:24:17,330 --> 01:24:19,330
Five years ago,

1781
01:24:19,330 --> 01:24:20,330
I would have saved $1,000 a

1782
01:24:20,330 --> 01:24:22,330
year on my driving cost. Now

1783
01:24:22,330 --> 01:24:24,330
I'm only saving $500 because

1784
01:24:24,330 --> 01:24:25,330
they have doubled the rates.

1785
01:24:25,330 --> 01:24:27,330
Gasoline prices,

1786
01:24:27,330 --> 01:24:29,330
as you probably know,

1787
01:24:29,330 --> 01:24:31,330
have not doubled. They have not

1788
01:24:31,330 --> 01:24:32,330
moved. They've actually come

1789
01:24:32,330 --> 01:24:34,330
down. They have oscillated and

1790
01:24:34,330 --> 01:24:36,330
moved around. I have another

1791
01:24:36,330 --> 01:24:38,330
reading. Thank you. Pleasure.

1792
01:24:38,330 --> 01:24:39,330
Pleasure. So if you compare

1793
01:24:39,330 --> 01:24:41,330
them with smuds rates. Anyone

1794
01:24:41,330 --> 01:24:43,330
here a smud customer? I am.

1795
01:24:43,330 --> 01:24:46,330
Okay, so this is from Smud's

1796
01:24:46,330 --> 01:24:48,330
website. A smud customer using

1797
01:24:48,330 --> 01:24:50,433
750 kilowatt hours a month

1798
01:24:52,330 --> 01:24:55,330
would pay $135 for that much

1799
01:24:55,330 --> 01:24:58,330
electricity. A pg and e

1800
01:24:58,330 --> 01:25:00,330
customer just located a couple

1801
01:25:00,330 --> 01:25:02,330
of miles away

1802
01:25:02,330 --> 01:25:04,330
across the road,

1803
01:25:04,330 --> 01:25:06,330
in some cases, would pay $352.

1804
01:25:06,330 --> 01:25:09,330
Now, if that's not highway

1805
01:25:09,330 --> 01:25:11,330
robbery, then what is? How can

1806
01:25:11,330 --> 01:25:12,330
they get away with it? It's

1807
01:25:12,330 --> 01:25:14,330
exactly the same electricity

1808
01:25:14,330 --> 01:25:16,330
from a physics and engineering

1809
01:25:16,330 --> 01:25:18,330
perspective. There's the same

1810
01:25:18,330 --> 01:25:20,330
air conditioning,

1811
01:25:20,330 --> 01:25:23,330
the same electric car charging,

1812
01:25:23,330 --> 01:25:25,330
same light bulb,

1813
01:25:28,330 --> 01:25:30,330
but it costs. So if you had a

1814
01:25:30,330 --> 01:25:31,330
choice

1815
01:25:31,330 --> 01:25:33,330
between two retail stores,

1816
01:25:33,330 --> 01:25:35,330
let's say one was Safeway, the

1817
01:25:35,330 --> 01:25:38,330
other was Costco, where would

1818
01:25:38,330 --> 01:25:40,330
you go? Well, the problem is we

1819
01:25:40,330 --> 01:25:42,433
can't switch suppliers. We're

1820
01:25:43,330 --> 01:25:46,330
stuck. That's how they're able

1821
01:25:47,330 --> 01:25:50,330
to get away with it. It's the

1822
01:25:50,330 --> 01:25:51,330
monopoly. But it's supposed

1823
01:25:51,330 --> 01:25:54,330
to be a regulated monopoly. It

1824
01:25:54,330 --> 01:25:57,330
has turned into an unregulated

1825
01:25:57,330 --> 01:25:59,330
monopoly because

1826
01:25:59,330 --> 01:26:01,330
of the commission's largess.

1827
01:26:01,330 --> 01:26:03,330
This is just showing over the

1828
01:26:03,330 --> 01:26:05,330
five years how the peak, mid

1829
01:26:05,330 --> 01:26:07,330
peak, and

1830
01:26:07,330 --> 01:26:09,330
off peak prices have changed.

1831
01:26:09,330 --> 01:26:11,330
And this is as of the end

1832
01:26:11,330 --> 01:26:12,330
of last year, when

1833
01:26:12,330 --> 01:26:13,330
on the right bar, which says

1834
01:26:13,330 --> 01:26:14,330
2024, the very right bar says

1835
01:26:14,330 --> 01:26:16,330
$0.34. That's gone up to 35.

1836
01:26:16,330 --> 01:26:17,330
And

1837
01:26:17,330 --> 01:26:18,330
by the time this year is over,

1838
01:26:18,330 --> 01:26:19,330
I suspect the 35 will be 37 or

1839
01:26:19,330 --> 01:26:20,330
38. Because it's a treadmill.

1840
01:26:20,330 --> 01:26:21,330
It's giving us palpitations

1841
01:26:21,330 --> 01:26:22,330
because the treadmill is very

1842
01:26:22,330 --> 01:26:23,330
fast. Now, this graph is truly

1843
01:26:23,330 --> 01:26:24,330
amazing. How could they get

1844
01:26:24,330 --> 01:26:26,330
away with this? No other

1845
01:26:26,330 --> 01:26:27,330
utility anywhere else has had

1846
01:26:27,330 --> 01:26:28,330
this rate

1847
01:26:28,330 --> 01:26:30,330
of rapid acceleration

1848
01:26:30,330 --> 01:26:32,330
of rates. And according

1849
01:26:32,330 --> 01:26:34,330
to some analysts,

1850
01:26:35,330 --> 01:26:37,330
pg and e bills

1851
01:26:37,330 --> 01:26:38,330
on a monthly basis may rise

1852
01:26:38,330 --> 01:26:40,330
by another. They already have

1853
01:26:40,330 --> 01:26:42,330
risen by $56 by the end of

1854
01:26:42,330 --> 01:26:44,330
April, but by the year end,

1855
01:26:44,330 --> 01:26:45,330
they could be higher

1856
01:26:45,330 --> 01:26:47,330
by another $100 per month,

1857
01:26:47,330 --> 01:26:49,330
not per year. And currently,

1858
01:26:49,330 --> 01:26:51,330
the average pg and e rate is

1859
01:26:51,330 --> 01:26:52,330
forty six cents per kilowatt

1860
01:26:52,330 --> 01:26:54,330
hour. It varies by rate,

1861
01:26:54,330 --> 01:26:56,330
type and how much you use,

1862
01:26:56,330 --> 01:26:58,330
etcetera, etcetera.

1863
01:26:58,330 --> 01:27:00,330
But the average

1864
01:27:00,330 --> 01:27:01,330
for all pg and e's 5 million

1865
01:27:01,330 --> 01:27:03,330
customers is $0.46. There's

1866
01:27:03,330 --> 01:27:04,330
three times higher than the us

1867
01:27:04,330 --> 01:27:06,330
average. Isn't that shocking?

1868
01:27:06,330 --> 01:27:08,330
What's funny

1869
01:27:08,330 --> 01:27:10,330
for me is people are just used

1870
01:27:10,330 --> 01:27:12,330
to it. Nobody says anything.

1871
01:27:12,330 --> 01:27:13,330
They complain. They say plenty.

1872
01:27:13,330 --> 01:27:16,330
They say plenty and you say

1873
01:27:16,330 --> 01:27:17,330
plenty. It's almost like. It's

1874
01:27:17,330 --> 01:27:19,330
almost

1875
01:27:19,330 --> 01:27:22,330
like if you had said nothing,

1876
01:27:22,330 --> 01:27:25,330
the same would have been true.

1877
01:27:25,330 --> 01:27:26,330
Maybe it could have been a

1878
01:27:26,330 --> 01:27:28,330
little higher. I think our big

1879
01:27:28,330 --> 01:27:30,330
problem comes down the fact

1880
01:27:30,330 --> 01:27:32,433
that CPUC is appointed

1881
01:27:33,330 --> 01:27:35,433
by friends and appointed

1882
01:27:38,330 --> 01:27:39,330
by the governor. Honestly, it's

1883
01:27:39,330 --> 01:27:41,330
just his friends. Yeah. The

1884
01:27:41,330 --> 01:27:43,330
CPUC is supposed to be the

1885
01:27:43,330 --> 01:27:44,330
California Public Utilities

1886
01:27:44,330 --> 01:27:46,330
Commission. But it has turned

1887
01:27:46,330 --> 01:27:47,330
into something else. And I have

1888
01:27:47,330 --> 01:27:48,330
a few other interpretations

1889
01:27:48,330 --> 01:27:50,330
that I can share some other

1890
01:27:50,330 --> 01:27:51,330
time. So what you have there,

1891
01:27:51,330 --> 01:27:53,330
you know, they have. They have

1892
01:27:53,330 --> 01:27:55,330
lost their anchor. And believe

1893
01:27:55,330 --> 01:27:57,330
me,

1894
01:27:57,330 --> 01:27:59,330
they couldn't be doing this

1895
01:27:59,330 --> 01:28:01,330
without the governor approving

1896
01:28:01,330 --> 01:28:03,330
it. And look

1897
01:28:03,330 --> 01:28:05,330
at the connections between our

1898
01:28:05,330 --> 01:28:07,330
current governor and pg and e,

1899
01:28:07,330 --> 01:28:08,330
and the history that goes back

1900
01:28:08,330 --> 01:28:11,330
there, too. They're much more

1901
01:28:11,330 --> 01:28:12,330
than skin deep,

1902
01:28:12,330 --> 01:28:14,330
one might say. I mean,

1903
01:28:14,330 --> 01:28:16,330
and we were going

1904
01:28:16,330 --> 01:28:17,330
to break up pg and e, right?

1905
01:28:17,330 --> 01:28:19,330
That's what the governor

1906
01:28:19,330 --> 01:28:20,330
himself was saying. We'd have

1907
01:28:20,330 --> 01:28:21,330
to look

1908
01:28:21,330 --> 01:28:23,330
at public ownership early on.

1909
01:28:23,330 --> 01:28:24,330
And then all is forgotten,

1910
01:28:24,330 --> 01:28:26,330
all is forgiven. God is most

1911
01:28:26,330 --> 01:28:27,330
kind. So all of that noise

1912
01:28:27,330 --> 01:28:29,330
in the media,

1913
01:28:30,330 --> 01:28:31,330
they just ride it out. And I

1914
01:28:31,330 --> 01:28:33,330
don't know how long this will

1915
01:28:33,330 --> 01:28:35,330
continue, but it's a very,

1916
01:28:35,330 --> 01:28:36,330
very disturbing connection that

1917
01:28:36,330 --> 01:28:38,330
at every social gathering I go

1918
01:28:38,330 --> 01:28:40,433
to, including weddings and

1919
01:28:41,330 --> 01:28:43,330
Carmel, or parties

1920
01:28:43,330 --> 01:28:45,330
near my house,

1921
01:28:45,330 --> 01:28:47,330
people just start coming

1922
01:28:47,330 --> 01:28:49,330
to me and complaining

1923
01:28:49,330 --> 01:28:51,330
about PG and E. Even though I

1924
01:28:51,330 --> 01:28:53,330
don't work for PG and E,

1925
01:28:53,330 --> 01:28:55,330
I am not PG and E. Somehow,

1926
01:28:55,330 --> 01:28:57,330
like a magnet, I draw those

1927
01:28:57,330 --> 01:28:58,330
filings and all we do is we

1928
01:28:58,330 --> 01:29:00,330
agree. And then they look

1929
01:29:00,330 --> 01:29:01,330
at me and they say,

1930
01:29:01,330 --> 01:29:03,330
so you're not doing anything?

1931
01:29:03,330 --> 01:29:05,330
Well, I said,

1932
01:29:05,330 --> 01:29:07,330
I'm doing whatever I can, but

1933
01:29:07,330 --> 01:29:09,330
it is a very stiff competition.

1934
01:29:09,330 --> 01:29:10,330
And then some come

1935
01:29:10,330 --> 01:29:12,330
to me and says, you're retired,

1936
01:29:12,330 --> 01:29:14,330
why are you not relaxing? I

1937
01:29:14,330 --> 01:29:16,330
said, how can I relax? As a

1938
01:29:16,330 --> 01:29:18,330
customer, as a public citizen,

1939
01:29:18,330 --> 01:29:20,330
I have to speak up. So it's

1940
01:29:20,330 --> 01:29:23,330
keeping me busy. Okay, so

1941
01:29:23,330 --> 01:29:25,330
along with the two other

1942
01:29:25,330 --> 01:29:27,330
investor owned utilities

1943
01:29:27,330 --> 01:29:29,330
in the state,

1944
01:29:29,330 --> 01:29:31,330
PG and E has blamed all

1945
01:29:31,330 --> 01:29:32,330
of those high rates

1946
01:29:32,330 --> 01:29:34,330
on the surge

1947
01:29:34,330 --> 01:29:35,330
in rooftop solar installations.

1948
01:29:35,330 --> 01:29:37,330
So why would anyone install

1949
01:29:37,330 --> 01:29:39,330
solar? It's because the rates

1950
01:29:39,330 --> 01:29:41,330
are high. And the bills are

1951
01:29:41,330 --> 01:29:43,330
high, and they're saying, oh,

1952
01:29:43,330 --> 01:29:44,330
now that you have installed

1953
01:29:44,330 --> 01:29:46,330
solar. That's why the cause and

1954
01:29:46,330 --> 01:29:47,330
effect have been very cleverly

1955
01:29:47,330 --> 01:29:49,330
intertwined. It's very

1956
01:29:49,330 --> 01:29:51,330
disingenuous. Right? Very

1957
01:29:51,330 --> 01:29:53,330
disingenuous, since

1958
01:29:54,330 --> 01:29:56,330
California's high rates predate

1959
01:29:56,330 --> 01:29:58,330
the arrival of solar panels

1960
01:29:58,330 --> 01:30:00,330
by more than two decades. And

1961
01:30:00,330 --> 01:30:02,330
I'll show you some graphs.

1962
01:30:02,330 --> 01:30:04,330
Californians installed solar

1963
01:30:04,330 --> 01:30:07,330
to cope with the skyrocketing

1964
01:30:07,330 --> 01:30:10,330
rates and not the other way

1965
01:30:10,330 --> 01:30:12,330
around. And furthermore,

1966
01:30:12,330 --> 01:30:14,330
if they want electrification,

1967
01:30:14,330 --> 01:30:16,330
solar customers are more likely

1968
01:30:16,330 --> 01:30:18,330
to go with heat pumps and

1969
01:30:18,330 --> 01:30:19,330
electric vehicles because they

1970
01:30:19,330 --> 01:30:21,330
can afford them. When I looked

1971
01:30:21,330 --> 01:30:23,330
at heat pumps twice, once in

1972
01:30:23,330 --> 01:30:25,330
2016 for my space heating and

1973
01:30:25,330 --> 01:30:26,330
air conditioning,

1974
01:30:26,330 --> 01:30:28,330
and then two years ago

1975
01:30:28,330 --> 01:30:30,330
for my water heating, but both

1976
01:30:30,330 --> 01:30:32,330
times the contractors would say

1977
01:30:32,330 --> 01:30:34,330
to me, unless you have solar,

1978
01:30:34,330 --> 01:30:36,330
it won't make much sense. And

1979
01:30:36,330 --> 01:30:38,330
then two years ago,

1980
01:30:38,330 --> 01:30:39,330
I had solar in the heat pump.

1981
01:30:39,330 --> 01:30:41,330
The water heater broke and I

1982
01:30:41,330 --> 01:30:43,330
was at Lowe's asking which one

1983
01:30:43,330 --> 01:30:45,330
should I pick? And he said,

1984
01:30:45,330 --> 01:30:47,330
you should pick this one. I

1985
01:30:47,330 --> 01:30:49,330
said, well, how

1986
01:30:50,330 --> 01:30:52,330
about that heat pump,

1987
01:30:52,330 --> 01:30:53,330
water heater? And he looked

1988
01:30:53,330 --> 01:30:55,330
at me and he said, oh,

1989
01:30:55,330 --> 01:30:56,330
go right ahead. If you want

1990
01:30:56,330 --> 01:30:58,330
your bills to go

1991
01:30:58,330 --> 01:30:59,330
through the roof,

1992
01:30:59,330 --> 01:31:01,330
go right ahead. So the

1993
01:31:01,330 --> 01:31:03,330
contractor community, and I'm

1994
01:31:03,330 --> 01:31:04,330
in touch with several of them

1995
01:31:04,330 --> 01:31:06,330
through professional channels

1996
01:31:06,330 --> 01:31:07,330
as well. It's a very difficult

1997
01:31:07,330 --> 01:31:08,330
sell. I'm sure you had

1998
01:31:08,330 --> 01:31:09,330
to think it through quite a bit

1999
01:31:09,330 --> 01:31:10,330
right before. And I have a

2000
01:31:10,330 --> 01:31:11,330
couple of friends who have

2001
01:31:11,330 --> 01:31:13,330
installed heat pumps. One spent

2002
01:31:13,330 --> 01:31:14,330
$44,000. I'm still trying

2003
01:31:14,330 --> 01:31:16,330
to figure out how it got

2004
01:31:16,330 --> 01:31:17,330
to be that high. I mean,

2005
01:31:17,330 --> 01:31:19,330
that sounds really high to me.

2006
01:31:19,330 --> 01:31:20,330
But he has promised me he will

2007
01:31:20,330 --> 01:31:22,330
give me an explanation. And

2008
01:31:22,330 --> 01:31:23,330
avoiding seeing me

2009
01:31:23,330 --> 01:31:25,330
for a few weeks now,

2010
01:31:25,330 --> 01:31:27,330
who knows what happened there.

2011
01:31:27,330 --> 01:31:29,330
Okay, so this is the growth of

2012
01:31:29,330 --> 01:31:30,330
solar panels that didn't really

2013
01:31:30,330 --> 01:31:32,330
start to grow until almost 20

2014
01:31:32,330 --> 01:31:34,330
years after the energy crisis.

2015
01:31:34,330 --> 01:31:36,330
I'm sorry,

2016
01:31:36,330 --> 01:31:39,330
did you say his bill was

2017
01:31:39,330 --> 01:31:41,330
44,000? No, his. Not his

2018
01:31:41,330 --> 01:31:43,330
electric bill. The cost

2019
01:31:43,330 --> 01:31:44,330
of installing. I mean, he also

2020
01:31:44,330 --> 01:31:47,330
did a home energy upgrade. I

2021
01:31:47,330 --> 01:31:48,330
think he didn't have air

2022
01:31:48,330 --> 01:31:50,330
conditioning to begin with,

2023
01:31:50,330 --> 01:31:52,330
so duct work, etcetera,

2024
01:31:52,330 --> 01:31:54,330
I think there was a lot

2025
01:31:54,330 --> 01:31:56,330
of infrastructure work, but I

2026
01:31:56,330 --> 01:31:57,330
think his bill is probably,

2027
01:31:57,330 --> 01:31:59,330
I would guess, between 100 and

2028
01:31:59,330 --> 01:32:01,330
$200. Okay. All right,

2029
01:32:01,330 --> 01:32:03,330
so what did the utilities do?

2030
01:32:03,330 --> 01:32:05,330
They decided to play

2031
01:32:05,330 --> 01:32:07,330
off one group of customers

2032
01:32:07,330 --> 01:32:09,330
against the other group

2033
01:32:09,330 --> 01:32:11,330
of customers. They argued that

2034
01:32:11,330 --> 01:32:13,330
there was a cost shift because

2035
01:32:13,330 --> 01:32:16,330
solar customers used so much

2036
01:32:16,330 --> 01:32:19,633
less power, power from the grid

2037
01:32:20,330 --> 01:32:23,330
than the average customer, so

2038
01:32:24,330 --> 01:32:26,330
they don't pay their fair share

2039
01:32:26,330 --> 01:32:28,433
of cost, and therefore,

2040
01:32:29,330 --> 01:32:30,330
the rest of the cost has

2041
01:32:30,330 --> 01:32:32,330
to be recovered

2042
01:32:32,330 --> 01:32:34,330
from everyone else. And then

2043
01:32:34,330 --> 01:32:36,330
they said only the wealthy

2044
01:32:36,330 --> 01:32:37,330
people installed. Solar is so

2045
01:32:37,330 --> 01:32:39,330
expensive. And so really, this

2046
01:32:39,330 --> 01:32:41,330
is a cost shift that is the

2047
01:32:41,330 --> 01:32:43,330
opposite of what Robin Hood

2048
01:32:43,330 --> 01:32:44,330
would be doing. This is reverse

2049
01:32:44,330 --> 01:32:45,330
robinhood. That was the phrase

2050
01:32:45,330 --> 01:32:47,330
that I ran into

2051
01:32:47,330 --> 01:32:48,330
in other states. So

2052
01:32:48,330 --> 01:32:50,330
like a rogue. A rogue, kind

2053
01:32:50,330 --> 01:32:52,330
of a cost shift. They also

2054
01:32:52,330 --> 01:32:53,330
argued that rooftop solar cost

2055
01:32:53,330 --> 01:32:55,330
far more than large scale

2056
01:32:55,330 --> 01:32:57,330
solar, and therefore,

2057
01:32:57,330 --> 01:32:58,330
we should focus just

2058
01:32:58,330 --> 01:33:00,330
on large scale solar farms way

2059
01:33:00,330 --> 01:33:02,330
out there, and the transmission

2060
01:33:02,330 --> 01:33:04,330
lines would bring the power.

2061
01:33:04,330 --> 01:33:06,330
Now, why would they do that?

2062
01:33:06,330 --> 01:33:09,330
Well, because they make money.

2063
01:33:09,330 --> 01:33:11,330
They get a profit. It's very

2064
01:33:11,330 --> 01:33:12,330
transparent, but it's amazing

2065
01:33:12,330 --> 01:33:14,330
how gullible the general

2066
01:33:14,330 --> 01:33:16,330
population is. Obviously, this

2067
01:33:16,330 --> 01:33:19,330
is not their specialty. This is

2068
01:33:19,330 --> 01:33:21,330
not what they think about. So

2069
01:33:21,330 --> 01:33:22,330
they managed to convince

2070
01:33:22,330 --> 01:33:24,330
at least a good chunk of the

2071
01:33:24,330 --> 01:33:26,330
legislators that large scale

2072
01:33:26,330 --> 01:33:28,330
solar is the way to go. People

2073
01:33:28,330 --> 01:33:29,330
even tell me some, well, known

2074
01:33:29,330 --> 01:33:31,330
academics who I will not name

2075
01:33:31,330 --> 01:33:33,330
that. Oh, it only costs five or

2076
01:33:33,330 --> 01:33:34,330
six cents per kilowatt hour

2077
01:33:34,330 --> 01:33:36,330
to have large scale solar,

2078
01:33:36,330 --> 01:33:39,330
whereas the solar you have put

2079
01:33:39,330 --> 01:33:40,330
in is

2080
01:33:40,330 --> 01:33:42,330
like fifteen cents. I said,

2081
01:33:42,330 --> 01:33:43,330
okay, why don't you start

2082
01:33:43,330 --> 01:33:45,330
selling me that power

2083
01:33:45,330 --> 01:33:47,330
at four or five cents? And then

2084
01:33:47,330 --> 01:33:48,330
there was no need for me

2085
01:33:48,330 --> 01:33:50,330
to put in solar. So why does it

2086
01:33:50,330 --> 01:33:51,330
cost four to five and I pay you

2087
01:33:51,330 --> 01:33:53,330
45? I mean, what's going

2088
01:33:53,330 --> 01:33:55,330
on here? That's the part of the

2089
01:33:55,330 --> 01:33:56,330
equation they delete and then

2090
01:33:56,330 --> 01:33:58,330
they immediately leave the room

2091
01:33:58,330 --> 01:33:59,330
or change the topic. They know

2092
01:33:59,330 --> 01:34:01,330
it. They know it. I mean, it's

2093
01:34:01,330 --> 01:34:03,330
not that they're that unable

2094
01:34:03,330 --> 01:34:05,330
to grasp common sense. So what

2095
01:34:05,330 --> 01:34:07,330
they have done now,

2096
01:34:07,330 --> 01:34:09,330
there was a podcast by one of

2097
01:34:09,330 --> 01:34:11,330
the professors just a few weeks

2098
01:34:11,330 --> 01:34:13,330
ago that another professor

2099
01:34:13,330 --> 01:34:15,330
friend of his from Princeton

2100
01:34:15,330 --> 01:34:16,330
put up on twitter. I listened

2101
01:34:16,330 --> 01:34:18,330
to it much as I didn't want to,

2102
01:34:18,330 --> 01:34:20,330
just to see what was the new

2103
01:34:20,330 --> 01:34:21,330
manufacturing of lies now. And

2104
01:34:21,330 --> 01:34:23,330
basically they said, oh, it's

2105
01:34:23,330 --> 01:34:24,330
inequitable because the poor

2106
01:34:24,330 --> 01:34:26,330
are subsidizing the rich. And

2107
01:34:26,330 --> 01:34:28,330
second, it is inefficient,

2108
01:34:28,330 --> 01:34:29,330
it costs more. So it is both

2109
01:34:29,330 --> 01:34:31,330
inefficient and inequitable.

2110
01:34:31,330 --> 01:34:33,330
How bad can it possibly be?

2111
01:34:33,330 --> 01:34:34,330
And you still want to do it?

2112
01:34:34,330 --> 01:34:36,330
It's like a snake

2113
01:34:36,330 --> 01:34:38,330
in the grass. Okay, so let's

2114
01:34:38,330 --> 01:34:40,330
just briefly examine this cost

2115
01:34:40,330 --> 01:34:42,330
shift. And I want to show

2116
01:34:42,330 --> 01:34:44,330
something very basic that they

2117
01:34:44,330 --> 01:34:46,330
have omitted in their math.

2118
01:34:46,330 --> 01:34:49,330
So, look at the middle bar,

2119
01:34:49,330 --> 01:34:51,330
is the average customer's usage

2120
01:34:51,330 --> 01:34:54,330
from PG and E. As of today,

2121
01:34:54,330 --> 01:34:56,433
540 kilowatt hours per month.

2122
01:34:57,330 --> 01:34:59,330
And then look

2123
01:34:59,330 --> 01:35:02,330
at the left bar, 980. Solar

2124
01:35:02,330 --> 01:35:04,330
customers,

2125
01:35:05,330 --> 01:35:07,330
before they installed solar,

2126
01:35:07,330 --> 01:35:09,330
used a lot more power than the

2127
01:35:09,330 --> 01:35:11,330
average customer. They had high

2128
01:35:11,330 --> 01:35:13,330
bills, that's why they put

2129
01:35:13,330 --> 01:35:15,330
in solar. And that goes back

2130
01:35:15,330 --> 01:35:17,330
years and years and decades. I

2131
01:35:17,330 --> 01:35:18,330
have my data,

2132
01:35:18,330 --> 01:35:20,330
I don't have data on other

2133
01:35:20,330 --> 01:35:22,330
people's pre solar use. Every

2134
01:35:22,330 --> 01:35:24,330
utility has it,

2135
01:35:24,330 --> 01:35:26,330
but I can't get it. So I just

2136
01:35:26,330 --> 01:35:27,330
use my own data. So my pre

2137
01:35:27,330 --> 01:35:28,330
solar data,

2138
01:35:28,330 --> 01:35:30,330
even though I have lived

2139
01:35:30,330 --> 01:35:32,330
in the house since 1989 in

2140
01:35:32,330 --> 01:35:33,330
Danville, I don't have that

2141
01:35:33,330 --> 01:35:35,330
digital data,

2142
01:35:35,330 --> 01:35:37,330
so I have it only from 2008

2143
01:35:37,330 --> 01:35:39,330
onwards. But the house hasn't

2144
01:35:39,330 --> 01:35:41,330
changed much. It's the same

2145
01:35:41,330 --> 01:35:43,330
house. So 980 for the years

2146
01:35:43,330 --> 01:35:44,330
from zero eight to 19 was my

2147
01:35:44,330 --> 01:35:46,330
kilowatt hour usage, almost

2148
01:35:46,330 --> 01:35:48,330
twice as much as the average

2149
01:35:48,330 --> 01:35:49,330
person. So I was paying twice

2150
01:35:49,330 --> 01:35:51,330
as much for the grid. And now,

2151
01:35:51,330 --> 01:35:53,330
of course, I'm paying 108.

2152
01:35:53,330 --> 01:35:55,330
That's the average

2153
01:35:55,330 --> 01:35:56,330
over the last few years,

2154
01:35:56,330 --> 01:35:58,330
a lot less. So what they do is

2155
01:35:58,330 --> 01:36:00,330
they don't show this bar

2156
01:36:00,330 --> 01:36:02,330
on the left,

2157
01:36:02,330 --> 01:36:04,330
they just show this. And they

2158
01:36:04,330 --> 01:36:06,330
say, you're robbing the poor

2159
01:36:06,330 --> 01:36:08,330
to pay the rich kind

2160
01:36:08,330 --> 01:36:10,330
of argument. Well, but for many

2161
01:36:10,330 --> 01:36:13,330
years it was the other way. So

2162
01:36:13,330 --> 01:36:15,330
if you're going

2163
01:36:16,330 --> 01:36:18,330
to compute my cost shift, look

2164
01:36:18,330 --> 01:36:20,330
at the whole history,

2165
01:36:20,330 --> 01:36:22,330
the life cycle of me and my

2166
01:36:22,330 --> 01:36:24,330
data is just one customer,

2167
01:36:24,330 --> 01:36:26,330
there are many others. Just add

2168
01:36:26,330 --> 01:36:28,330
it all up and this is what you

2169
01:36:28,330 --> 01:36:30,330
get then. So I added up the

2170
01:36:30,330 --> 01:36:32,330
life cycle cost shift and my

2171
01:36:32,330 --> 01:36:34,330
lifetime overusage is that

2172
01:36:34,330 --> 01:36:35,330
number, 37,397 kilowatt hours.

2173
01:36:35,330 --> 01:36:37,330
I have paid more

2174
01:36:37,330 --> 01:36:39,330
for the grid,

2175
01:36:39,330 --> 01:36:41,330
as have most solar customers,

2176
01:36:41,330 --> 01:36:43,330
when you look

2177
01:36:43,330 --> 01:36:45,330
at the longer time horizon. So

2178
01:36:45,330 --> 01:36:47,330
saying that we use less and

2179
01:36:47,330 --> 01:36:49,330
therefore are creating a cost

2180
01:36:49,330 --> 01:36:51,433
shift is only half

2181
01:36:52,330 --> 01:36:54,330
of the story. It's very clever.

2182
01:36:54,330 --> 01:36:56,330
And I've raised this and

2183
01:36:56,330 --> 01:36:58,330
they're saying, we don't

2184
01:36:58,330 --> 01:37:00,330
understand what you're saying.

2185
01:37:00,330 --> 01:37:01,330
You're speaking Latin and

2186
01:37:01,330 --> 01:37:04,330
Greek now, which is one way

2187
01:37:04,330 --> 01:37:06,433
to just say, hey,

2188
01:37:07,330 --> 01:37:08,330
just go away. Unfortunately,

2189
01:37:08,330 --> 01:37:10,330
the utilities and their

2190
01:37:10,330 --> 01:37:12,433
consultants convinced the CPUC

2191
01:37:13,330 --> 01:37:15,330
that net energy metering should

2192
01:37:15,330 --> 01:37:17,330
be killed because it was

2193
01:37:17,330 --> 01:37:19,330
subsidizing the rich

2194
01:37:19,330 --> 01:37:20,330
at the expense of the poor,

2195
01:37:20,330 --> 01:37:21,330
and it should be replaced

2196
01:37:21,330 --> 01:37:23,330
with net billing. So what they

2197
01:37:23,330 --> 01:37:24,330
did was they said, we're going

2198
01:37:24,330 --> 01:37:25,330
to cut your compensation

2199
01:37:25,330 --> 01:37:26,330
for exports by 75%, which is

2200
01:37:26,330 --> 01:37:27,330
huge, because export

2201
01:37:27,330 --> 01:37:28,330
compensation accounts for half

2202
01:37:28,330 --> 01:37:30,330
of the savings that a solar

2203
01:37:30,330 --> 01:37:31,330
customer gets. So you cut half

2204
01:37:31,330 --> 01:37:33,330
of that by 75%,

2205
01:37:33,330 --> 01:37:35,330
you have really made it

2206
01:37:35,330 --> 01:37:36,330
for new solar customers. It

2207
01:37:36,330 --> 01:37:38,330
doesn't make much sense. It's

2208
01:37:38,330 --> 01:37:40,330
so expensive now. Only the

2209
01:37:40,330 --> 01:37:41,330
Veldi will now put in solar,

2210
01:37:41,330 --> 01:37:42,330
and they are,

2211
01:37:42,330 --> 01:37:44,330
they are putting it in. But

2212
01:37:44,330 --> 01:37:46,330
solar installations have

2213
01:37:46,330 --> 01:37:47,330
dropped by 80% in the six

2214
01:37:47,330 --> 01:37:49,330
months following this

2215
01:37:49,330 --> 01:37:50,330
development

2216
01:37:50,330 --> 01:37:52,330
of the net billing tariff.

2217
01:37:52,330 --> 01:37:54,330
They have doubled the payback

2218
01:37:54,330 --> 01:37:56,330
period. So the solar industry

2219
01:37:56,330 --> 01:37:58,330
is in a crisis. But it's not

2220
01:37:58,330 --> 01:38:00,330
just the industry that is

2221
01:38:00,330 --> 01:38:01,330
in a crisis, it is the

2222
01:38:01,330 --> 01:38:03,330
customers who no longer have

2223
01:38:03,330 --> 01:38:04,330
that option available

2224
01:38:04,330 --> 01:38:06,330
to them,

2225
01:38:06,330 --> 01:38:08,330
unless they're willing to put

2226
01:38:08,330 --> 01:38:09,330
in batteries. And batteries are

2227
01:38:09,330 --> 01:38:11,330
still expensive,

2228
01:38:11,330 --> 01:38:12,330
and you would have to put

2229
01:38:12,330 --> 01:38:14,330
in two or three batteries

2230
01:38:14,330 --> 01:38:15,330
really

2231
01:38:15,330 --> 01:38:17,330
to do what they're asking you

2232
01:38:17,330 --> 01:38:18,330
to do. I have one battery, and

2233
01:38:18,330 --> 01:38:20,330
actually, interestingly enough,

2234
01:38:20,330 --> 01:38:21,330
I put it in just because I'm

2235
01:38:21,330 --> 01:38:23,330
in this business that wanted

2236
01:38:23,330 --> 01:38:25,330
to see what the battery does.

2237
01:38:25,330 --> 01:38:27,330
And I have the time

2238
01:38:27,330 --> 01:38:28,330
of use rate that I showed you,

2239
01:38:28,330 --> 01:38:30,330
the three period rate I use the

2240
01:38:30,330 --> 01:38:32,330
battery for arbitrage against

2241
01:38:32,330 --> 01:38:34,330
during the high peak period

2242
01:38:34,330 --> 01:38:36,330
price. I don't buy power

2243
01:38:36,330 --> 01:38:37,330
from PG and e. Solar panels are

2244
01:38:37,330 --> 01:38:39,330
not generating much because the

2245
01:38:39,330 --> 01:38:40,330
sun's going down. It's

2246
01:38:40,330 --> 01:38:42,330
from four to 09:00 p.m. the

2247
01:38:42,330 --> 01:38:43,330
battery is fully charged and it

2248
01:38:43,330 --> 01:38:45,330
begins to supply the house

2249
01:38:45,330 --> 01:38:46,330
with power. That works till

2250
01:38:46,330 --> 01:38:48,330
about 07:00 p.m.

2251
01:38:48,330 --> 01:38:49,330
on hot summer days like this.

2252
01:38:49,330 --> 01:38:51,330
But on cool spring days or

2253
01:38:51,330 --> 01:38:52,330
winter days,

2254
01:38:52,330 --> 01:38:54,330
the battery powers the house

2255
01:38:54,330 --> 01:38:55,330
until almost midnight. So the

2256
01:38:55,330 --> 01:38:57,330
battery, for me,

2257
01:38:57,330 --> 01:38:58,330
was an experiment. Most people

2258
01:38:58,330 --> 01:38:59,330
didn't put in batteries

2259
01:38:59,330 --> 01:39:01,330
until this rule change

2260
01:39:01,330 --> 01:39:03,330
occurred. But what I didn't

2261
01:39:03,330 --> 01:39:04,330
know what the battery can do,

2262
01:39:04,330 --> 01:39:06,330
which proved

2263
01:39:06,330 --> 01:39:07,330
to be the real benefit, was

2264
01:39:07,330 --> 01:39:09,330
during outages. And I've had

2265
01:39:09,330 --> 01:39:10,330
more than two dozen outages

2266
01:39:10,330 --> 01:39:12,330
since June of 2021, even though

2267
01:39:12,330 --> 01:39:13,330
I live in an area where

2268
01:39:13,330 --> 01:39:15,330
underground wiring is the norm.

2269
01:39:15,330 --> 01:39:17,330
And even though those days were

2270
01:39:17,330 --> 01:39:19,330
mild weather days,

2271
01:39:19,330 --> 01:39:21,330
they were not hot days

2272
01:39:21,330 --> 01:39:23,330
like today,

2273
01:39:23,330 --> 01:39:24,330
they were not psps days.

2274
01:39:24,330 --> 01:39:26,330
Underground wiring is

2275
01:39:26,330 --> 01:39:28,330
in terrible shape and keeps

2276
01:39:28,330 --> 01:39:29,330
on having mechanical problems.

2277
01:39:29,330 --> 01:39:31,330
After 50 years,

2278
01:39:31,330 --> 01:39:32,330
if you don't maintain a car,

2279
01:39:32,330 --> 01:39:34,330
your car probably would have

2280
01:39:34,330 --> 01:39:35,330
died 30 years prior. Well, the

2281
01:39:35,330 --> 01:39:37,330
wiring has survived,

2282
01:39:37,330 --> 01:39:38,330
but now it's beginning

2283
01:39:38,330 --> 01:39:39,330
to die. And so the battery

2284
01:39:39,330 --> 01:39:41,330
kicks

2285
01:39:41,330 --> 01:39:42,330
in and keeps the lights going.

2286
01:39:42,330 --> 01:39:44,330
It keeps the refrigerators

2287
01:39:44,330 --> 01:39:45,330
going. The food is safe,

2288
01:39:45,330 --> 01:39:47,330
of course. The air conditioner

2289
01:39:47,330 --> 01:39:49,330
cannot run,

2290
01:39:49,330 --> 01:39:50,330
and I can't charge my car,

2291
01:39:50,330 --> 01:39:52,330
but the basic necessities. So

2292
01:39:52,330 --> 01:39:53,330
the batteries are definitely a

2293
01:39:53,330 --> 01:39:55,330
good option,

2294
01:39:55,330 --> 01:39:56,330
but they're still expensive,

2295
01:39:56,330 --> 01:39:58,330
so that's what the PUC did.

2296
01:39:58,330 --> 01:39:59,330
They had a very smug look

2297
01:39:59,330 --> 01:40:01,330
on their face. They said,

2298
01:40:01,330 --> 01:40:03,330
everyone's now going

2299
01:40:03,330 --> 01:40:04,330
to buy solar and put batteries,

2300
01:40:04,330 --> 01:40:06,330
and that'd be good

2301
01:40:06,330 --> 01:40:07,330
for the grid. Well, 80% sales

2302
01:40:07,330 --> 01:40:08,330
drop tells us that not everyone

2303
01:40:08,330 --> 01:40:10,330
bought that story. So expensive

2304
01:40:10,330 --> 01:40:11,330
to install it. So why would

2305
01:40:11,330 --> 01:40:13,330
they do something like this

2306
01:40:13,330 --> 01:40:14,330
in a state that's supposed to

2307
01:40:14,330 --> 01:40:16,330
promote electrification and

2308
01:40:16,330 --> 01:40:18,330
renewable energy? Actually,

2309
01:40:18,330 --> 01:40:20,330
what was amazing

2310
01:40:20,330 --> 01:40:21,330
to me is this was met

2311
01:40:21,330 --> 01:40:22,330
with a lot of opposition

2312
01:40:22,330 --> 01:40:24,330
by many well known people,

2313
01:40:24,330 --> 01:40:25,330
including from Hollywood. The

2314
01:40:25,330 --> 01:40:27,330
guy who played the incredible

2315
01:40:27,330 --> 01:40:28,330
Hulk, I forget his name. He was

2316
01:40:28,330 --> 01:40:30,330
active on Twitter

2317
01:40:30,330 --> 01:40:32,330
on this issue. And

2318
01:40:32,330 --> 01:40:34,330
Schwarzenegger wrote an op ed

2319
01:40:34,330 --> 01:40:36,330
in the New York Times

2320
01:40:36,330 --> 01:40:37,330
lambasting this proposal. The

2321
01:40:37,330 --> 01:40:39,330
PUC modified certain elements

2322
01:40:39,330 --> 01:40:41,330
of it, but still approved it

2323
01:40:41,330 --> 01:40:43,330
unanimously. Now, when an

2324
01:40:43,330 --> 01:40:44,330
agency takes decisions

2325
01:40:44,330 --> 01:40:46,330
unanimously,

2326
01:40:47,330 --> 01:40:48,330
and that was the first of many

2327
01:40:48,330 --> 01:40:50,330
decisions they would make, all

2328
01:40:50,330 --> 01:40:52,330
of their rate increases have

2329
01:40:52,330 --> 01:40:53,330
been approved unanimously. So

2330
01:40:53,330 --> 01:40:55,330
then you begin to suspect that

2331
01:40:55,330 --> 01:40:57,330
there is something suspicious

2332
01:40:57,330 --> 01:40:59,330
here,

2333
01:40:59,330 --> 01:41:01,330
that they are following orders.

2334
01:41:01,330 --> 01:41:02,330
It's

2335
01:41:02,330 --> 01:41:04,330
like a totalitarian state.

2336
01:41:04,330 --> 01:41:05,330
That's very unfortunate,

2337
01:41:05,330 --> 01:41:07,330
because it used to not be this

2338
01:41:07,330 --> 01:41:08,330
way four decades ago. Okay, so

2339
01:41:08,330 --> 01:41:09,330
that was the first wrong turn.

2340
01:41:09,330 --> 01:41:11,330
Now comes the second wrong

2341
01:41:11,330 --> 01:41:13,330
turn. The shell game between

2342
01:41:13,330 --> 01:41:15,330
fixed and variable charges. So

2343
01:41:15,330 --> 01:41:17,330
we did not have a fixed charge

2344
01:41:17,330 --> 01:41:19,330
for two

2345
01:41:19,330 --> 01:41:20,330
of these three utilities. It

2346
01:41:20,330 --> 01:41:22,330
was literally zero. And the

2347
01:41:22,330 --> 01:41:24,330
third one, SCE, had a fixed

2348
01:41:24,330 --> 01:41:26,330
charge

2349
01:41:26,330 --> 01:41:27,330
of mean almost nominal, because

2350
01:41:27,330 --> 01:41:29,330
tern kept opposing them. The

2351
01:41:29,330 --> 01:41:31,330
POC listening

2352
01:41:31,330 --> 01:41:33,330
to turn and others said, okay,

2353
01:41:33,330 --> 01:41:35,330
no fixed charge. New law is

2354
01:41:35,330 --> 01:41:37,330
passed, Ab 205, and we'll come

2355
01:41:37,330 --> 01:41:38,330
more into that. And what it did

2356
01:41:38,330 --> 01:41:39,330
was it said, you're going

2357
01:41:39,330 --> 01:41:41,330
to lower the energy charge,

2358
01:41:41,330 --> 01:41:42,330
the variable charge, so that

2359
01:41:42,330 --> 01:41:44,330
electricity will become more

2360
01:41:44,330 --> 01:41:46,330
affordable and you will tempt

2361
01:41:46,330 --> 01:41:47,330
people. Oh, the price just

2362
01:41:47,330 --> 01:41:48,330
dropped. So you can buy more

2363
01:41:48,330 --> 01:41:50,330
food or more gasoline or more

2364
01:41:50,330 --> 01:41:51,330
electricity. Now is a sale.

2365
01:41:51,330 --> 01:41:53,330
But the sale had a catch. You

2366
01:41:53,330 --> 01:41:55,330
had to pay for the sale. Have

2367
01:41:55,330 --> 01:41:56,330
you ever heard of that? So you

2368
01:41:56,330 --> 01:41:58,330
had to pay a fixed charge,

2369
01:41:58,330 --> 01:41:59,330
the subscription fee,

2370
01:41:59,330 --> 01:42:01,330
to be eligible

2371
01:42:01,330 --> 01:42:02,330
to get the discount. And that's

2372
01:42:02,330 --> 01:42:05,330
how it was sold and marketed.

2373
01:42:05,330 --> 01:42:07,330
Why was the fixed charge

2374
01:42:07,330 --> 01:42:09,330
introduced? Why was there a

2375
01:42:09,330 --> 01:42:11,330
need to do that? Why was it not

2376
01:42:11,330 --> 01:42:13,330
a genuine sale? Because the

2377
01:42:13,330 --> 01:42:15,330
utilities would have lost

2378
01:42:15,330 --> 01:42:16,330
revenue. But God forbid, how

2379
01:42:16,330 --> 01:42:18,330
can you deny them the food that

2380
01:42:18,330 --> 01:42:20,330
they subsist on,

2381
01:42:20,330 --> 01:42:22,330
which is money

2382
01:42:22,330 --> 01:42:23,330
from customers? And so they had

2383
01:42:23,330 --> 01:42:25,330
to bring in the fixed charge.

2384
01:42:25,330 --> 01:42:27,330
It was called revenue neutral,

2385
01:42:27,330 --> 01:42:28,330
which is jargon for saying the

2386
01:42:28,330 --> 01:42:30,330
utility will always get the

2387
01:42:30,330 --> 01:42:32,330
money it needs, regardless

2388
01:42:32,330 --> 01:42:35,330
of what the red design is. It

2389
01:42:35,330 --> 01:42:36,330
is like the law

2390
01:42:36,330 --> 01:42:38,330
of conservation of energy

2391
01:42:38,330 --> 01:42:39,330
in physics, which is the law

2392
01:42:39,330 --> 01:42:41,330
of conservation of revenue

2393
01:42:41,330 --> 01:42:42,330
in regulation. We knew it was

2394
01:42:42,330 --> 01:42:43,330
coming, and sure enough, it

2395
01:42:43,330 --> 01:42:45,330
came,

2396
01:42:45,330 --> 01:42:46,330
but turn would have opposed it.

2397
01:42:46,330 --> 01:42:48,330
They decided to make the fixed

2398
01:42:48,330 --> 01:42:49,330
charge a function of income.

2399
01:42:49,330 --> 01:42:50,330
And that was an epiphany that I

2400
01:42:50,330 --> 01:42:52,330
don't know

2401
01:42:52,330 --> 01:42:53,330
at what point occurred, but

2402
01:42:53,330 --> 01:42:55,330
when I first saw that paper

2403
01:42:55,330 --> 01:42:57,330
come out

2404
01:42:57,330 --> 01:42:59,330
from the academics pushing

2405
01:42:59,330 --> 01:43:00,330
for this,

2406
01:43:00,330 --> 01:43:02,330
I thought it was going to die.

2407
01:43:02,330 --> 01:43:05,633
But let me do just some

2408
01:43:06,330 --> 01:43:07,330
backdrop here. So I personally

2409
01:43:07,330 --> 01:43:09,330
support fixed charges,

2410
01:43:10,330 --> 01:43:11,330
but they should be based

2411
01:43:11,330 --> 01:43:13,330
on some reasonable concept

2412
01:43:13,330 --> 01:43:15,330
of metering cost, billing cost,

2413
01:43:15,330 --> 01:43:16,330
and customer care. That's how

2414
01:43:16,330 --> 01:43:18,330
it is done throughout the

2415
01:43:18,330 --> 01:43:19,330
United States. And I actually

2416
01:43:19,330 --> 01:43:21,330
was involved

2417
01:43:21,330 --> 01:43:23,330
in supporting a fixed charge

2418
01:43:23,330 --> 01:43:25,330
of $3 and $10 for these three

2419
01:43:25,330 --> 01:43:26,330
investor owned utilities. I was

2420
01:43:26,330 --> 01:43:28,330
their expert witness.

2421
01:43:28,330 --> 01:43:30,330
But the PUC would think of

2422
01:43:30,330 --> 01:43:31,330
approving it and then turn

2423
01:43:31,330 --> 01:43:33,330
would push back so it wouldn't

2424
01:43:33,330 --> 01:43:35,330
get approved. And finally

2425
01:43:35,330 --> 01:43:37,330
thought,

2426
01:43:37,330 --> 01:43:38,330
it'll approve just a dollar

2427
01:43:38,330 --> 01:43:40,330
three, fixed charge. Well, the

2428
01:43:40,330 --> 01:43:42,330
general counsel of the PUC said

2429
01:43:42,330 --> 01:43:43,330
is unconstitutional. I said,

2430
01:43:43,330 --> 01:43:45,330
what do you mean it's

2431
01:43:45,330 --> 01:43:47,330
unconstitutional? The

2432
01:43:47,330 --> 01:43:48,330
constitution gets

2433
01:43:48,330 --> 01:43:50,330
into such details

2434
01:43:50,330 --> 01:43:52,330
on electric rates. And

2435
01:43:52,330 --> 01:43:53,330
apparently it did. I never

2436
01:43:53,330 --> 01:43:55,330
checked it,

2437
01:43:55,330 --> 01:43:58,633
but they were required to go

2438
01:44:02,330 --> 01:44:04,330
to the legislature to get them

2439
01:44:04,330 --> 01:44:05,330
to change it. So they went and

2440
01:44:05,330 --> 01:44:07,330
they invited me. I went out

2441
01:44:07,330 --> 01:44:08,330
to Fresno. I'm sitting there

2442
01:44:08,330 --> 01:44:10,330
at a community college in

2443
01:44:10,330 --> 01:44:11,330
Fresno, and right next

2444
01:44:11,330 --> 01:44:12,330
to me is the head

2445
01:44:12,330 --> 01:44:14,330
of the energy division

2446
01:44:14,330 --> 01:44:16,330
of the PUC. At the time we had

2447
01:44:16,330 --> 01:44:17,330
a long debate. 100 customers

2448
01:44:17,330 --> 01:44:18,330
were there. They lined up.

2449
01:44:18,330 --> 01:44:19,330
They had their views,

2450
01:44:19,330 --> 01:44:21,330
they had their objectives,

2451
01:44:21,330 --> 01:44:23,330
but it was a caucus

2452
01:44:23,330 --> 01:44:24,330
of the state assembly,

2453
01:44:24,330 --> 01:44:26,330
and they passed it. And then

2454
01:44:26,330 --> 01:44:28,330
the full assembly approved it,

2455
01:44:28,330 --> 01:44:30,330
$10 a month fixed charge.

2456
01:44:30,330 --> 01:44:32,330
But as I said,

2457
01:44:32,330 --> 01:44:34,330
the POC still wouldn't approve

2458
01:44:34,330 --> 01:44:35,330
it,

2459
01:44:35,330 --> 01:44:37,330
because ultimately the PUC has

2460
01:44:37,330 --> 01:44:39,330
to approve it. Even if the law

2461
01:44:39,330 --> 01:44:40,330
says you can do it, it doesn't

2462
01:44:40,330 --> 01:44:42,330
become reality unless the PUC

2463
01:44:42,330 --> 01:44:43,330
does it,

2464
01:44:43,330 --> 01:44:45,330
because turn kept objecting.

2465
01:44:45,330 --> 01:44:46,330
Fast forward to 2017. The PUC

2466
01:44:46,330 --> 01:44:48,330
held a workshop on rate design.

2467
01:44:48,330 --> 01:44:50,330
A suggestion was made

2468
01:44:50,330 --> 01:44:52,330
to drop energy prices down

2469
01:44:52,330 --> 01:44:53,330
to the marginal cost

2470
01:44:53,330 --> 01:44:55,330
of energy,

2471
01:44:55,330 --> 01:44:57,330
which would be ten or $0.11,

2472
01:44:57,330 --> 01:44:59,330
economists say. And you've

2473
01:44:59,330 --> 01:45:00,330
heard this, I'm sure, from 100

2474
01:45:00,330 --> 01:45:02,330
other economists,

2475
01:45:02,330 --> 01:45:03,330
that the most efficient way

2476
01:45:03,330 --> 01:45:05,330
to allocate scarce resources

2477
01:45:05,330 --> 01:45:07,330
to meet the infinite needs

2478
01:45:07,330 --> 01:45:08,330
of human beings is

2479
01:45:08,330 --> 01:45:10,330
to price everything

2480
01:45:10,330 --> 01:45:11,330
at marginal cost. So the same

2481
01:45:11,330 --> 01:45:13,330
proposal was made here. Well,

2482
01:45:13,330 --> 01:45:14,330
but the price

2483
01:45:14,330 --> 01:45:16,330
around that time was around

2484
01:45:16,330 --> 01:45:17,330
thirty five cents a kilowatt

2485
01:45:17,330 --> 01:45:19,330
hour. And if you drop it down

2486
01:45:19,330 --> 01:45:20,330
to ten, there would be a

2487
01:45:20,330 --> 01:45:22,330
massive revenue deficiency.

2488
01:45:22,330 --> 01:45:24,330
They would go bankrupt. And so

2489
01:45:24,330 --> 01:45:25,330
they said,

2490
01:45:25,330 --> 01:45:27,330
what we need is a fixed charge.

2491
01:45:27,330 --> 01:45:29,330
And I was on a panel where the

2492
01:45:29,330 --> 01:45:31,330
fixed charge was debated,

2493
01:45:31,330 --> 01:45:33,330
and I said, this fixed charge

2494
01:45:33,330 --> 01:45:35,330
would be really high because

2495
01:45:35,330 --> 01:45:37,330
you're looking

2496
01:45:38,330 --> 01:45:40,433
at the difference between

2497
01:45:41,330 --> 01:45:43,330
$0.30, let's say, and $0.10.

2498
01:45:43,330 --> 01:45:45,330
So there's a 20 cent revenue

2499
01:45:45,330 --> 01:45:47,330
deficiency. The fixed charge

2500
01:45:47,330 --> 01:45:49,330
would be enormous. The workshop

2501
01:45:49,330 --> 01:45:50,330
ended inconclusively. And then

2502
01:45:50,330 --> 01:45:52,330
2019. The POC invited me

2503
01:45:52,330 --> 01:45:54,330
to come and talk about

2504
01:45:54,330 --> 01:45:56,330
electrification and rate

2505
01:45:57,330 --> 01:45:59,330
design. So I went,

2506
01:45:59,330 --> 01:46:01,330
I thought we were going

2507
01:46:01,330 --> 01:46:03,330
to talk

2508
01:46:03,330 --> 01:46:05,330
about electric cars. I mean,

2509
01:46:05,330 --> 01:46:07,330
that's what I thought was the

2510
01:46:07,330 --> 01:46:09,330
issue, because there,

2511
01:46:09,330 --> 01:46:11,330
that person who invited me,

2512
01:46:11,330 --> 01:46:13,330
who was still at the PUC, was

2513
01:46:13,330 --> 01:46:15,330
with a conference

2514
01:46:15,330 --> 01:46:17,330
on electrification of cars

2515
01:46:17,330 --> 01:46:19,330
with me in Los Angeles two

2516
01:46:19,330 --> 01:46:20,330
months ago. So I go

2517
01:46:20,330 --> 01:46:22,330
in and suddenly, lo and behold,

2518
01:46:22,330 --> 01:46:24,330
it turns out they want me

2519
01:46:24,330 --> 01:46:26,330
to chat about heat pumps. And I

2520
01:46:26,330 --> 01:46:28,330
was not prepared for that. So I

2521
01:46:28,330 --> 01:46:30,330
said, do you have anything I

2522
01:46:30,330 --> 01:46:31,330
can react to? And they said,

2523
01:46:31,330 --> 01:46:33,330
no, you're the expert. You tell

2524
01:46:33,330 --> 01:46:35,330
us. I said, you know,

2525
01:46:35,330 --> 01:46:36,330
I have done no thinking

2526
01:46:36,330 --> 01:46:38,330
on this. Well, just start

2527
01:46:38,330 --> 01:46:40,330
talking. Okay. So I said,

2528
01:46:40,330 --> 01:46:42,330
lower electric rates. They're

2529
01:46:42,330 --> 01:46:44,330
too expensive. They said,

2530
01:46:44,330 --> 01:46:46,330
we can't do it. I said,

2531
01:46:46,330 --> 01:46:47,330
raise gas rates,

2532
01:46:47,330 --> 01:46:49,330
we can't do it. I said,

2533
01:46:49,330 --> 01:46:51,330
provide rebates

2534
01:46:51,330 --> 01:46:53,330
on heat pumps. Oh, that's not

2535
01:46:53,330 --> 01:46:54,330
for us to do. Okay, put a tax

2536
01:46:54,330 --> 01:46:56,330
on gas water heaters and gas

2537
01:46:56,330 --> 01:46:57,330
furnaces. We can't do taxes.

2538
01:46:57,330 --> 01:46:59,330
Ban the installation

2539
01:46:59,330 --> 01:47:01,330
of gas equipment. Fine. And

2540
01:47:01,330 --> 01:47:03,330
arrested contractors who

2541
01:47:03,330 --> 01:47:04,330
installed gas equipment they

2542
01:47:04,330 --> 01:47:06,330
started laughing. I said,

2543
01:47:06,330 --> 01:47:08,330
you asked me to brainstorm, and

2544
01:47:08,330 --> 01:47:10,330
that's all I'm coming up with.

2545
01:47:10,330 --> 01:47:12,330
They said, we can't do most

2546
01:47:12,330 --> 01:47:13,330
of what you're saying. Thank

2547
01:47:13,330 --> 01:47:15,330
them. Left the room. I'd taken

2548
01:47:15,330 --> 01:47:17,330
two junior people with me

2549
01:47:17,330 --> 01:47:18,330
for the excitement, but it

2550
01:47:18,330 --> 01:47:20,330
became more exciting than they

2551
01:47:20,330 --> 01:47:22,330
had ever realized.

2552
01:47:22,330 --> 01:47:24,330
Afterwards, one of them said,

2553
01:47:24,330 --> 01:47:27,330
is this how they make their

2554
01:47:27,330 --> 01:47:29,330
decisions? I said,

2555
01:47:29,330 --> 01:47:31,330
you just got an inside view.

2556
01:47:31,330 --> 01:47:32,330
Okay, then in 2021, this group

2557
01:47:32,330 --> 01:47:34,330
called Next ten,

2558
01:47:34,330 --> 01:47:35,330
they published a paper authored

2559
01:47:35,330 --> 01:47:37,330
by three academics at Cal, and

2560
01:47:37,330 --> 01:47:38,330
they decided to make the fixed

2561
01:47:38,330 --> 01:47:40,330
charge a function of income.

2562
01:47:40,330 --> 01:47:41,330
And this is what the fixed

2563
01:47:41,330 --> 01:47:43,330
charge would have looked like.

2564
01:47:43,330 --> 01:47:44,330
The green line fixed charge

2565
01:47:44,330 --> 01:47:46,330
would have been close to $175 a

2566
01:47:46,330 --> 01:47:48,330
month if you were above a

2567
01:47:48,330 --> 01:47:49,330
certain income threshold. Can

2568
01:47:49,330 --> 01:47:51,330
you imagine? I mean,

2569
01:47:51,330 --> 01:47:52,330
these values defy imagination.

2570
01:47:52,330 --> 01:47:54,330
And so ab 205 suddenly appears

2571
01:47:54,330 --> 01:47:55,330
out of nowhere, and nobody

2572
01:47:55,330 --> 01:47:57,330
today, and I'm curious if any

2573
01:47:57,330 --> 01:47:58,330
of you know who authored that

2574
01:47:58,330 --> 01:48:00,330
paragraph. Nobody is rising

2575
01:48:00,330 --> 01:48:02,330
to the occasion. You would

2576
01:48:02,330 --> 01:48:04,330
think they would be proud

2577
01:48:04,330 --> 01:48:05,330
of what they did, right?

2578
01:48:05,330 --> 01:48:07,330
But they have fingers

2579
01:48:07,330 --> 01:48:08,330
on their lip like

2580
01:48:08,330 --> 01:48:10,330
in a catholic school. Nobody

2581
01:48:10,330 --> 01:48:11,330
will betray the name of that

2582
01:48:11,330 --> 01:48:13,330
individual because that

2583
01:48:13,330 --> 01:48:15,330
individual may have an issue

2584
01:48:15,330 --> 01:48:16,330
starting their car, turning the

2585
01:48:16,330 --> 01:48:18,330
key might become a challenge

2586
01:48:18,330 --> 01:48:20,330
for them. You know what I mean?

2587
01:48:20,330 --> 01:48:22,330
So it said, the commission.

2588
01:48:22,330 --> 01:48:23,330
The commission may authorize

2589
01:48:23,330 --> 01:48:25,330
fixed charges. Didn't say

2590
01:48:25,330 --> 01:48:27,330
shell. It didn't say would. It

2591
01:48:27,330 --> 01:48:29,330
didn't mandate. It just said

2592
01:48:29,330 --> 01:48:31,330
May. But suddenly that May was

2593
01:48:31,330 --> 01:48:33,330
taken to be shell. It always

2594
01:48:33,330 --> 01:48:35,330
is. It always is. And it was

2595
01:48:35,330 --> 01:48:38,330
like the height of duplicity.

2596
01:48:38,330 --> 01:48:39,330
There's another world,

2597
01:48:39,330 --> 01:48:41,330
but I can't find it. Okay, so

2598
01:48:41,330 --> 01:48:44,330
the CPUC forced the IGFC,

2599
01:48:46,330 --> 01:48:48,330
the income graduate,

2600
01:48:48,330 --> 01:48:50,433
into an ongoing proceeding

2601
01:48:52,330 --> 01:48:54,433
on demand flexibility. Now,

2602
01:48:56,330 --> 01:48:58,330
demand flexibility is about

2603
01:48:58,330 --> 01:49:00,330
having time varying rates.

2604
01:49:00,330 --> 01:49:02,330
Fixed charge is the polar

2605
01:49:02,330 --> 01:49:04,330
opposite

2606
01:49:04,330 --> 01:49:06,330
of a time varying rate.

2607
01:49:06,330 --> 01:49:08,330
But you can count upon the PUC

2608
01:49:08,330 --> 01:49:10,330
to bend the rules so that even

2609
01:49:10,330 --> 01:49:12,330
a beef looks

2610
01:49:12,330 --> 01:49:14,330
like a vegetarian steak.

2611
01:49:14,330 --> 01:49:16,330
Okay. Several parties submitted

2612
01:49:16,330 --> 01:49:18,330
their proposals on April 7,

2613
01:49:18,330 --> 01:49:20,433
which was good Friday

2614
01:49:21,330 --> 01:49:23,330
of last year. Turn, which had

2615
01:49:23,330 --> 01:49:25,330
always opposed a fixed charge,

2616
01:49:25,330 --> 01:49:26,330
suddenly came out swinging

2617
01:49:26,330 --> 01:49:29,330
in full support. Why? Because

2618
01:49:29,330 --> 01:49:32,330
their customers would see lower

2619
01:49:32,330 --> 01:49:34,330
bills. Because the fixed charge

2620
01:49:34,330 --> 01:49:36,330
was going to be really low

2621
01:49:36,330 --> 01:49:38,330
for them, and they would still

2622
01:49:38,330 --> 01:49:41,330
get the same volumetric charge

2623
01:49:41,330 --> 01:49:43,330
reduction. Teamed up

2624
01:49:43,330 --> 01:49:45,330
with an environmental group,

2625
01:49:45,330 --> 01:49:47,330
NRDC, which had also always

2626
01:49:47,330 --> 01:49:49,330
opposed fixed charges. I was

2627
01:49:49,330 --> 01:49:51,330
dumbfounded. I said, you know,

2628
01:49:51,330 --> 01:49:54,330
this is beyond my abilities.

2629
01:49:54,330 --> 01:49:56,330
This is where the Matt Damon

2630
01:49:56,330 --> 01:49:59,330
angle comes in. Somebody has

2631
01:49:59,330 --> 01:50:02,330
entered the room that has

2632
01:50:04,330 --> 01:50:06,330
suddenly cast a shadow

2633
01:50:06,330 --> 01:50:08,330
on everything I learned about

2634
01:50:08,330 --> 01:50:10,330
raid design and how agencies

2635
01:50:10,330 --> 01:50:12,330
work. To this day,

2636
01:50:12,330 --> 01:50:14,330
I can't totally figure it out.

2637
01:50:14,330 --> 01:50:16,330
Okay. The ious submitted a

2638
01:50:16,330 --> 01:50:18,330
testimony. I'm going

2639
01:50:19,330 --> 01:50:20,330
to speed up. There are details

2640
01:50:20,330 --> 01:50:22,330
here. I think this deck can be

2641
01:50:22,330 --> 01:50:24,330
shared

2642
01:50:24,330 --> 01:50:25,330
with the others afterwards.

2643
01:50:25,330 --> 01:50:28,330
Right. Okay, so this was,

2644
01:50:28,330 --> 01:50:30,330
it went

2645
01:50:30,330 --> 01:50:31,330
through some gyrations. This

2646
01:50:31,330 --> 01:50:33,330
was their original proposal.

2647
01:50:33,330 --> 01:50:35,330
Looking at PG and E. It would

2648
01:50:35,330 --> 01:50:37,330
have been $92 if you were not a

2649
01:50:37,330 --> 01:50:38,330
care customer or not a Fara

2650
01:50:38,330 --> 01:50:40,330
customer, hardworking,

2651
01:50:40,330 --> 01:50:41,330
middle income couple. All

2652
01:50:41,330 --> 01:50:42,330
of those would fall

2653
01:50:42,330 --> 01:50:43,330
in that fourth category, and

2654
01:50:43,330 --> 01:50:44,330
suddenly they would be paying

2655
01:50:44,330 --> 01:50:46,330
$92 a month extra. They said,

2656
01:50:46,330 --> 01:50:47,330
this will promote

2657
01:50:47,330 --> 01:50:48,330
electrification,

2658
01:50:48,330 --> 01:50:49,330
but as I'm showing here,

2659
01:50:49,330 --> 01:50:50,330
it won't. It's a shell game.

2660
01:50:50,330 --> 01:50:51,330
So you think you're ahead

2661
01:50:51,330 --> 01:50:52,330
because your energy price went

2662
01:50:52,330 --> 01:50:53,330
down. Oh, but suddenly every

2663
01:50:53,330 --> 01:50:54,330
month they're taking a fixed

2664
01:50:54,330 --> 01:50:55,330
charge out

2665
01:50:55,330 --> 01:50:56,330
of your same pocket. I mean,

2666
01:50:56,330 --> 01:50:57,330
you'd have

2667
01:50:57,330 --> 01:50:58,330
to be not paying attention,

2668
01:50:58,330 --> 01:50:59,330
but after three months,

2669
01:50:59,330 --> 01:51:00,330
everybody will figure it out.

2670
01:51:00,330 --> 01:51:01,330
So they were hoping the

2671
01:51:01,330 --> 01:51:02,330
swindling game somehow will not

2672
01:51:02,330 --> 01:51:03,330
be picked up,

2673
01:51:03,330 --> 01:51:04,330
and everybody would say, oh,

2674
01:51:04,330 --> 01:51:05,330
yeah, the fixed charge is

2675
01:51:05,330 --> 01:51:06,330
like a price

2676
01:51:06,330 --> 01:51:07,330
for my citizenship of the

2677
01:51:07,330 --> 01:51:08,330
United States, act

2678
01:51:08,330 --> 01:51:10,330
of patriotic fervor.

2679
01:51:10,330 --> 01:51:12,330
>> The fixed charge would be

2680
01:51:12,330 --> 01:51:14,330
applied to everyone regardless

2681
01:51:14,330 --> 01:51:15,330
if you were

2682
01:51:15,330 --> 01:51:17,330
in a CCA or not.

2683
01:51:17,330 --> 01:51:18,330
>> Regardless

2684
01:51:18,330 --> 01:51:20,330
of which territory you were in

2685
01:51:20,330 --> 01:51:22,330
and regardless whether you were

2686
01:51:22,330 --> 01:51:23,330
CAiR or Fara.

2687
01:51:23,330 --> 01:51:25,330
But it would vary by income.

2688
01:51:25,330 --> 01:51:27,330
So that's what they have done

2689
01:51:27,330 --> 01:51:29,330
now. And I guess the new

2690
01:51:29,330 --> 01:51:31,330
charge, you probably know. So

2691
01:51:31,330 --> 01:51:32,330
the utilities started

2692
01:51:32,330 --> 01:51:34,330
to lower their numbers, and

2693
01:51:34,330 --> 01:51:36,433
what ultimately got approved

2694
01:51:37,330 --> 01:51:38,330
was this proposal where they

2695
01:51:38,330 --> 01:51:40,330
created three tiers. The first

2696
01:51:40,330 --> 01:51:42,330
tier is care,

2697
01:51:42,330 --> 01:51:44,330
really low income. Your fixed

2698
01:51:44,330 --> 01:51:47,330
charge is only $6. And if

2699
01:51:47,330 --> 01:51:49,433
you're sort of just

2700
01:51:50,330 --> 01:51:52,330
above that, but still under,

2701
01:51:52,330 --> 01:51:54,330
you know, under $50,000, let's

2702
01:51:54,330 --> 01:51:56,330
say, to pick a number,

2703
01:51:56,330 --> 01:51:59,330
it'll be $12, it's double the

2704
01:51:59,330 --> 01:52:01,330
$6. And if you're everyone else

2705
01:52:01,330 --> 01:52:02,330
making $60,000 a year or more,

2706
01:52:02,330 --> 01:52:04,330
you're going to pay the $24.

2707
01:52:04,330 --> 01:52:06,330
And where did they get the

2708
01:52:06,330 --> 01:52:08,330
number? It's not based

2709
01:52:08,330 --> 01:52:10,330
on cost, it's based

2710
01:52:10,330 --> 01:52:11,330
on a cheat sheet of the Smud

2711
01:52:11,330 --> 01:52:14,330
website. They just copied the

2712
01:52:14,330 --> 01:52:15,330
smud number. And what I said

2713
01:52:15,330 --> 01:52:17,330
to them was, if you're going

2714
01:52:17,330 --> 01:52:18,330
to copy Smud's fixed charge,

2715
01:52:18,330 --> 01:52:20,330
also copy their energy charge,

2716
01:52:20,330 --> 01:52:22,330
which is, you know,

2717
01:52:22,330 --> 01:52:24,330
don't just do cut and paste

2718
01:52:24,330 --> 01:52:26,330
of half the text, you have

2719
01:52:26,330 --> 01:52:28,330
to copy the entire text. You

2720
01:52:28,330 --> 01:52:29,330
know,

2721
01:52:29,330 --> 01:52:31,433
they should be embarrassed.

2722
01:52:32,330 --> 01:52:33,330
Just copying smuts number was

2723
01:52:33,330 --> 01:52:35,330
the most idiotic thing,

2724
01:52:35,330 --> 01:52:37,330
honestly, in raid design,

2725
01:52:37,330 --> 01:52:38,330
that I've ever seen. Three

2726
01:52:38,330 --> 01:52:40,330
large utilities, copying a

2727
01:52:40,330 --> 01:52:41,330
small utility's homework

2728
01:52:41,330 --> 01:52:43,330
assignment and turning it in,

2729
01:52:43,330 --> 01:52:44,330
and the commission saying, yes,

2730
01:52:44,330 --> 01:52:46,330
you passed. That was the part

2731
01:52:46,330 --> 01:52:48,330
that really hurt. I mean, how

2732
01:52:48,330 --> 01:52:49,330
could the commission not see

2733
01:52:49,330 --> 01:52:51,330
what was going on? I'm sure

2734
01:52:51,330 --> 01:52:52,330
they did. And the larger

2735
01:52:52,330 --> 01:52:54,330
utilities wanted to say,

2736
01:52:54,330 --> 01:52:56,330
we're only going

2737
01:52:56,330 --> 01:52:58,330
to charge what Smud does

2738
01:52:58,330 --> 01:53:00,330
because everyone knows that

2739
01:53:00,330 --> 01:53:01,330
Smud has great rates. So

2740
01:53:01,330 --> 01:53:03,330
they're, like you said,

2741
01:53:03,330 --> 01:53:05,330
they're only looking

2742
01:53:05,330 --> 01:53:07,330
at half the equation,

2743
01:53:07,330 --> 01:53:08,330
but they're trying to say, oh,

2744
01:53:08,330 --> 01:53:10,330
well,

2745
01:53:10,330 --> 01:53:11,330
we're not charging very much

2746
01:53:11,330 --> 01:53:13,330
because, look,

2747
01:53:13,330 --> 01:53:14,330
we're doing what smud does,

2748
01:53:14,330 --> 01:53:16,330
and everyone loves smud. I must

2749
01:53:16,330 --> 01:53:18,330
admit, Smud should have

2750
01:53:18,330 --> 01:53:19,330
objected. I mean, but I don't

2751
01:53:19,330 --> 01:53:20,330
think officially they have. Or

2752
01:53:20,330 --> 01:53:21,330
maybe they were happy just

2753
01:53:21,330 --> 01:53:23,330
to have something copied. They

2754
01:53:23,330 --> 01:53:24,330
were going to charge two

2755
01:53:24,330 --> 01:53:25,330
thousand five hundred dollars

2756
01:53:25,330 --> 01:53:27,330
to two hundred dollars. It's

2757
01:53:27,330 --> 01:53:28,330
like, oh, now we're only

2758
01:53:28,330 --> 01:53:30,330
charging you this much. They

2759
01:53:30,330 --> 01:53:31,330
said,

2760
01:53:31,330 --> 01:53:33,330
we have made a huge compromise.

2761
01:53:33,330 --> 01:53:34,330
We have dropped it down

2762
01:53:34,330 --> 01:53:36,330
from ninety two dollars

2763
01:53:36,330 --> 01:53:37,330
to twenty four dollars. And I

2764
01:53:37,330 --> 01:53:39,330
was so vocal on this,

2765
01:53:39,330 --> 01:53:40,330
they kept reaching to me

2766
01:53:40,330 --> 01:53:41,330
through back channels. You

2767
01:53:41,330 --> 01:53:43,330
should be happy now. It's just

2768
01:53:43,330 --> 01:53:44,330
24. It's not the 92. Yes, as we

2769
01:53:44,330 --> 01:53:46,330
hear what you're saying. I

2770
01:53:46,330 --> 01:53:47,330
said, where did you get the 24

2771
01:53:47,330 --> 01:53:48,330
from? You just copied it

2772
01:53:48,330 --> 01:53:50,330
from smudge. And I said,

2773
01:53:50,330 --> 01:53:52,330
I'd be okay if it was $15 or

2774
01:53:52,330 --> 01:53:53,330
something small. You can't go

2775
01:53:53,330 --> 01:53:55,330
from zero to 24 suddenly

2776
01:53:55,330 --> 01:53:56,330
in one fell swoop. So here is

2777
01:53:56,330 --> 01:53:57,330
the part that's more worrisome.

2778
01:53:57,330 --> 01:53:59,330
The 24 has the appearance

2779
01:53:59,330 --> 01:54:01,330
of looking halfway decent,

2780
01:54:01,330 --> 01:54:03,330
down from 92. But the PUC has

2781
01:54:03,330 --> 01:54:05,330
left the door open

2782
01:54:05,330 --> 01:54:06,330
to raising the fixed charge in

2783
01:54:06,330 --> 01:54:08,330
subsequent rate design cases

2784
01:54:08,330 --> 01:54:09,330
and also to introducing more

2785
01:54:09,330 --> 01:54:11,330
income tiers. This is what they

2786
01:54:11,330 --> 01:54:12,330
say. The camel has got his nose

2787
01:54:12,330 --> 01:54:13,330
under the tent. And once the

2788
01:54:13,330 --> 01:54:15,330
camel is in there

2789
01:54:15,330 --> 01:54:16,330
through the nose. I've been

2790
01:54:16,330 --> 01:54:18,330
to Saudi Arabia many times as a

2791
01:54:18,330 --> 01:54:19,330
consultant. Okay, so

2792
01:54:19,330 --> 01:54:21,330
unanimously approved, four

2793
01:54:21,330 --> 01:54:23,330
to zero. One commissioner

2794
01:54:23,330 --> 01:54:24,330
recusing himself because he was

2795
01:54:24,330 --> 01:54:26,330
the head of the PAO,

2796
01:54:26,330 --> 01:54:28,330
the public advocates office.

2797
01:54:28,330 --> 01:54:30,330
And this unanimous vote came

2798
01:54:30,330 --> 01:54:31,330
despite several cautionary

2799
01:54:31,330 --> 01:54:33,330
editorials in the LA Times, the

2800
01:54:33,330 --> 01:54:36,330
Chronicle and the Bee and many

2801
01:54:36,330 --> 01:54:37,330
other national publications.

2802
01:54:37,330 --> 01:54:39,330
And many cautionary letters

2803
01:54:39,330 --> 01:54:41,330
were sent

2804
01:54:41,330 --> 01:54:43,330
by state assembly members,

2805
01:54:43,330 --> 01:54:45,330
state senators, and even

2806
01:54:45,330 --> 01:54:47,330
federal congressional

2807
01:54:48,330 --> 01:54:50,330
representatives to Alice

2808
01:54:50,330 --> 01:54:52,330
Reynolds, the president

2809
01:54:52,330 --> 01:54:54,330
of the PUC. It ignored, I mean,

2810
01:54:54,330 --> 01:54:56,330
just defies the description

2811
01:54:56,330 --> 01:54:58,330
of decency. This charge is

2812
01:54:58,330 --> 01:55:00,330
going to be the second highest

2813
01:55:00,330 --> 01:55:02,330
in the country. So we're going

2814
01:55:02,330 --> 01:55:04,330
from zero, which is the lowest

2815
01:55:04,330 --> 01:55:06,330
in the country,

2816
01:55:06,330 --> 01:55:09,330
to suddenly the second highest

2817
01:55:09,330 --> 01:55:11,330
after a utility in Mississippi

2818
01:55:11,330 --> 01:55:13,330
that is not known

2819
01:55:13,330 --> 01:55:15,330
for doing anything

2820
01:55:15,330 --> 01:55:17,433
for energy efficiencies. So

2821
01:55:18,330 --> 01:55:20,330
very, very strange,

2822
01:55:21,330 --> 01:55:23,330
embarrassing,

2823
01:55:23,330 --> 01:55:26,330
and they'd never show you this

2824
01:55:26,330 --> 01:55:29,633
chart, but that's the day they

2825
01:55:30,330 --> 01:55:32,433
never benchmarked anything that

2826
01:55:33,330 --> 01:55:35,433
they were doing. So

2827
01:55:36,330 --> 01:55:39,330
in closing, what I will do is

2828
01:55:39,330 --> 01:55:41,330
I'll say if the intent was

2829
01:55:41,330 --> 01:55:43,330
really

2830
01:55:43,330 --> 01:55:45,330
to promote electrification,

2831
01:55:45,330 --> 01:55:47,330
they took a wrong turn. They

2832
01:55:47,330 --> 01:55:49,330
went down this way. And if

2833
01:55:49,330 --> 01:55:52,330
somebody was to ask me,

2834
01:55:52,330 --> 01:55:53,330
what should they have done?

2835
01:55:53,330 --> 01:55:55,330
And maybe they will come

2836
01:55:55,330 --> 01:55:57,330
to their senses and go

2837
01:55:57,330 --> 01:55:58,330
in this direction,

2838
01:55:58,330 --> 01:56:01,330
even though I doubt it. But

2839
01:56:01,330 --> 01:56:02,330
at least I felt compelled

2840
01:56:02,330 --> 01:56:04,330
to add a couple

2841
01:56:04,330 --> 01:56:05,330
of slides here. The first thing

2842
01:56:05,330 --> 01:56:07,330
the PUC should do is cap the

2843
01:56:07,330 --> 01:56:09,330
growth of electric rates

2844
01:56:09,330 --> 01:56:11,330
to the rate

2845
01:56:11,330 --> 01:56:13,330
of inflation long overdue. We

2846
01:56:13,330 --> 01:56:15,330
can't double it every eight

2847
01:56:15,330 --> 01:56:16,330
years. Find ways

2848
01:56:16,330 --> 01:56:18,330
to lower cost, and thus the

2849
01:56:18,330 --> 01:56:20,330
rate level why are PG and E's

2850
01:56:20,330 --> 01:56:22,330
rates three times the national

2851
01:56:22,330 --> 01:56:24,330
average? Offer low income

2852
01:56:24,330 --> 01:56:25,330
customers additional rebates if

2853
01:56:25,330 --> 01:56:27,330
you want to really encourage

2854
01:56:27,330 --> 01:56:29,330
electrification and focus

2855
01:56:29,330 --> 01:56:31,330
on the low income segment.

2856
01:56:31,330 --> 01:56:33,330
But the challenge that I have

2857
01:56:33,330 --> 01:56:34,330
with the low income segment is

2858
01:56:34,330 --> 01:56:36,330
their priorities are food,

2859
01:56:36,330 --> 01:56:38,330
clothing, shelter,

2860
01:56:38,330 --> 01:56:39,330
transportation,

2861
01:56:39,330 --> 01:56:41,330
and education. Those are their

2862
01:56:41,330 --> 01:56:42,330
five most important things.

2863
01:56:42,330 --> 01:56:44,330
Energy is important and they

2864
01:56:44,330 --> 01:56:46,330
certainly want affordability.

2865
01:56:46,330 --> 01:56:47,330
But they're not going

2866
01:56:47,330 --> 01:56:49,330
to buy a heat pump,

2867
01:56:49,330 --> 01:56:50,330
which is so expensive. Many

2868
01:56:50,330 --> 01:56:52,330
of them rent a house. They

2869
01:56:52,330 --> 01:56:54,330
don't even own the house and

2870
01:56:54,330 --> 01:56:56,330
they don't even own a car. So

2871
01:56:56,330 --> 01:56:57,330
how are you going

2872
01:56:57,330 --> 01:56:59,330
to help them?

2873
01:56:59,330 --> 01:57:00,330
By subsidizing the price

2874
01:57:00,330 --> 01:57:02,330
of an EV. So the best way

2875
01:57:02,330 --> 01:57:04,330
to do it, in my opinion, is

2876
01:57:04,330 --> 01:57:06,330
to have a modest fixed charge.

2877
01:57:06,330 --> 01:57:08,330
Yes, we agree fixed charge is

2878
01:57:08,330 --> 01:57:10,330
needed. Do it gradually, ten

2879
01:57:10,330 --> 01:57:11,330
to $15 is reasonable. And then

2880
01:57:11,330 --> 01:57:13,330
set the energy price equal

2881
01:57:13,330 --> 01:57:15,330
to marginal cost. Let it vary

2882
01:57:15,330 --> 01:57:17,330
by time of use, but only apply

2883
01:57:17,330 --> 01:57:19,330
this marginal cost rate

2884
01:57:19,330 --> 01:57:21,330
to new purchases, not

2885
01:57:21,330 --> 01:57:23,330
to your existing. This is the

2886
01:57:23,330 --> 01:57:26,330
second time I've done it today.

2887
01:57:26,330 --> 01:57:29,330
I'm sorry. Spill the water.

2888
01:57:29,330 --> 01:57:31,330
It's not big. Basically focus

2889
01:57:31,330 --> 01:57:33,330
on the new decision making that

2890
01:57:33,330 --> 01:57:35,330
customers have and they're

2891
01:57:35,330 --> 01:57:37,330
in the market

2892
01:57:37,330 --> 01:57:40,330
for a heat pump. Say, okay,

2893
01:57:40,330 --> 01:57:43,330
we have AI technology today.

2894
01:57:43,330 --> 01:57:45,330
We have smart meters. We will

2895
01:57:45,330 --> 01:57:46,330
know how much energy the heat

2896
01:57:46,330 --> 01:57:48,330
pump is using and this marginal

2897
01:57:48,330 --> 01:57:50,330
cost rate of $0.10 will apply

2898
01:57:50,330 --> 01:57:53,330
to your heat pump. That will

2899
01:57:53,330 --> 01:57:55,330
suddenly boost the sales of

2900
01:57:55,330 --> 01:57:57,330
heat pumps and do the same

2901
01:57:57,330 --> 01:57:59,330
thing for the electric car. So

2902
01:57:59,330 --> 01:58:01,330
apply it at the margin, and

2903
01:58:01,330 --> 01:58:03,330
that way the utilities don't

2904
01:58:03,330 --> 01:58:05,330
lose revenue. They're still

2905
01:58:05,330 --> 01:58:07,330
getting their current revenue.

2906
01:58:07,330 --> 01:58:09,330
You don't have

2907
01:58:09,330 --> 01:58:11,330
to do the shell game. They are

2908
01:58:11,330 --> 01:58:13,330
still made whole and

2909
01:58:13,330 --> 01:58:14,330
at the margin yourself,

2910
01:58:14,330 --> 01:58:16,330
lowering the price to reflect

2911
01:58:16,330 --> 01:58:18,330
what you're saying is the true

2912
01:58:18,330 --> 01:58:20,330
additional energy cost and

2913
01:58:20,330 --> 01:58:22,330
everyone's happy. And

2914
01:58:22,330 --> 01:58:24,330
by the way,

2915
01:58:24,330 --> 01:58:25,330
I didn't just make this up.

2916
01:58:25,330 --> 01:58:27,330
This is already being done

2917
01:58:27,330 --> 01:58:28,330
somewhere. It's in the state

2918
01:58:28,330 --> 01:58:29,330
of Georgia

2919
01:58:29,330 --> 01:58:31,330
for C and I customers,

2920
01:58:31,330 --> 01:58:32,330
commercial and industrial

2921
01:58:32,330 --> 01:58:33,330
customers. Georgia Power has

2922
01:58:33,330 --> 01:58:35,330
wanted

2923
01:58:35,330 --> 01:58:36,330
to encourage electrification

2924
01:58:36,330 --> 01:58:38,330
since the nineties and they

2925
01:58:38,330 --> 01:58:40,330
have had a rate which applies

2926
01:58:40,330 --> 01:58:42,330
at the margin, and it is the

2927
01:58:42,330 --> 01:58:44,330
marginal cost and it's really

2928
01:58:44,330 --> 01:58:45,330
low. And when I first saw that

2929
01:58:45,330 --> 01:58:47,330
rate, the person who developed

2930
01:58:47,330 --> 01:58:50,330
it had come from South

2931
01:58:50,330 --> 01:58:51,330
Africa. He was well versed

2932
01:58:51,330 --> 01:58:53,330
in all of these issues because

2933
01:58:53,330 --> 01:58:56,330
they had done it for their gold

2934
01:58:56,330 --> 01:58:57,330
mines and diamond mines and

2935
01:58:57,330 --> 01:58:59,330
whatever other mines they have.

2936
01:58:59,330 --> 01:59:01,330
They have a lot of big

2937
01:59:01,330 --> 01:59:03,330
industrial load and they offer

2938
01:59:03,330 --> 01:59:04,330
this rate so that they can

2939
01:59:04,330 --> 01:59:06,330
electrify. And so I proposed

2940
01:59:06,330 --> 01:59:08,330
this. I said to Georgia

2941
01:59:08,330 --> 01:59:10,330
Power, I said,

2942
01:59:10,330 --> 01:59:12,330
why don't you apply this rate

2943
01:59:12,330 --> 01:59:14,330
to your residential and

2944
01:59:14,330 --> 01:59:16,330
commercial customers. Why only

2945
01:59:16,330 --> 01:59:17,330
for the big commercial

2946
01:59:17,330 --> 01:59:19,330
industrial customers. And I

2947
01:59:19,330 --> 01:59:21,330
said,

2948
01:59:21,330 --> 01:59:22,330
that way you'll promote a lot

2949
01:59:22,330 --> 01:59:24,330
of smart energy use. But of

2950
01:59:24,330 --> 01:59:25,330
course they didn't want the

2951
01:59:25,330 --> 01:59:27,330
residential and commercial

2952
01:59:27,330 --> 01:59:29,330
customers to use electricity

2953
01:59:29,330 --> 01:59:30,330
the way they wanted to. And I

2954
01:59:30,330 --> 01:59:32,330
said, why is that? They said,

2955
01:59:32,330 --> 01:59:34,330
you don't understand. You will

2956
01:59:34,330 --> 01:59:35,330
never understand. We have

2957
01:59:35,330 --> 01:59:37,330
something here called southern

2958
01:59:37,330 --> 01:59:39,330
comfort. Okay. So I stopped

2959
01:59:39,330 --> 01:59:41,330
pushing, but the idea stayed

2960
01:59:41,330 --> 01:59:43,330
with me and I thought this

2961
01:59:43,330 --> 01:59:44,330
might be the time

2962
01:59:44,330 --> 01:59:46,330
to revisit it and introduce it.

2963
01:59:46,330 --> 01:59:47,330
So I'm pushing this. I'm going

2964
01:59:47,330 --> 01:59:49,330
to try to get it in the

2965
01:59:49,330 --> 01:59:51,330
newspapers and other channels

2966
01:59:51,330 --> 01:59:52,330
because this accomplishes the

2967
01:59:52,330 --> 01:59:54,330
goal of electrification

2968
01:59:54,330 --> 01:59:56,330
without creating the mess

2969
01:59:56,330 --> 01:59:57,330
of a fixed charge that's based

2970
01:59:57,330 --> 01:59:59,330
on income. I'm sure they will

2971
01:59:59,330 --> 02:00:01,330
not do it, but if there's

2972
02:00:01,330 --> 02:00:03,330
enough public pressure, maybe

2973
02:00:03,330 --> 02:00:05,330
some legislators might get

2974
02:00:05,330 --> 02:00:06,330
interested and maybe some bill

2975
02:00:06,330 --> 02:00:08,330
might pass. So this is my

2976
02:00:08,330 --> 02:00:10,330
closing slide, and I hope you

2977
02:00:10,330 --> 02:00:12,433
found it interesting. Any

2978
02:00:16,330 --> 02:00:18,330
surprises? Any comments?

2979
02:00:25,330 --> 02:00:26,330
>> I appreciate the details

2980
02:00:26,330 --> 02:00:28,330
of how badly were being treated

2981
02:00:28,330 --> 02:00:29,330
by PG and E. We all know we're

2982
02:00:29,330 --> 02:00:31,330
being treated badly, but now,

2983
02:00:31,330 --> 02:00:33,330
we know the details.

2984
02:00:33,330 --> 02:00:34,330
>> It's amazing how they get

2985
02:00:34,330 --> 02:00:36,433
away with these kinds.

2986
02:00:37,330 --> 02:00:39,330
>> I don't get it.

2987
02:00:39,330 --> 02:00:41,330
>> I mean,

2988
02:00:41,330 --> 02:00:43,330
at some point I did a post on

2989
02:00:43,330 --> 02:00:45,330
LinkedIn, I said,

2990
02:00:45,330 --> 02:00:46,330
there's a dirty Harry here. I

2991
02:00:46,330 --> 02:00:48,330
don't know who it is,

2992
02:00:48,330 --> 02:00:49,330
but the dirty Harry is killing

2993
02:00:49,330 --> 02:00:50,330
legislation

2994
02:00:50,330 --> 02:00:52,330
to stop the fixed charge. It's

2995
02:00:52,330 --> 02:00:53,330
killing legislation

2996
02:00:53,330 --> 02:00:55,330
to change the solar rules. And

2997
02:00:55,330 --> 02:00:57,330
so I was told there is a person

2998
02:00:57,330 --> 02:00:58,330
x whose name,

2999
02:00:58,330 --> 02:01:00,330
thankfully I forget who,

3000
02:01:00,330 --> 02:01:01,330
is walking the halls,

3001
02:01:01,330 --> 02:01:03,330
and he is their broker. And the

3002
02:01:03,330 --> 02:01:05,330
broker,

3003
02:01:06,330 --> 02:01:08,330
I don't know what tactics he

3004
02:01:08,330 --> 02:01:10,330
uses, but when one

3005
02:01:10,330 --> 02:01:12,330
of the bills AB 1999 was set

3006
02:01:12,330 --> 02:01:14,330
to be voted upon by the Energy

3007
02:01:14,330 --> 02:01:16,330
and Utilities committee,

3008
02:01:17,330 --> 02:01:19,330
and that would have put a cap

3009
02:01:19,330 --> 02:01:20,330
of dollar 25

3010
02:01:20,330 --> 02:01:22,330
on this and said, it'll be no

3011
02:01:22,330 --> 02:01:24,330
higher and even this will be

3012
02:01:24,330 --> 02:01:26,330
revisited after three years.

3013
02:01:26,330 --> 02:01:28,330
The chair of that committee had

3014
02:01:28,330 --> 02:01:29,330
been talked to and decided

3015
02:01:29,330 --> 02:01:31,330
to not even put it

3016
02:01:31,330 --> 02:01:34,330
on the agenda. So how can you

3017
02:01:34,330 --> 02:01:35,330
vote on something that's not

3018
02:01:35,330 --> 02:01:37,330
on the agenda? And so they

3019
02:01:37,330 --> 02:01:39,330
couldn't take a vote. And it

3020
02:01:39,330 --> 02:01:40,330
was so frustrating because so

3021
02:01:40,330 --> 02:01:42,330
many

3022
02:01:42,330 --> 02:01:44,330
of the legislators who are

3023
02:01:44,330 --> 02:01:45,330
Democrats and also Republicans

3024
02:01:45,330 --> 02:01:47,330
would have supported it. So how

3025
02:01:47,330 --> 02:01:48,330
do you prevent an embarrassment

3026
02:01:48,330 --> 02:01:50,330
from occurring where ultimately

3027
02:01:50,330 --> 02:01:52,330
the governor will be forced

3028
02:01:52,330 --> 02:01:53,330
to admit that in a democratic

3029
02:01:53,330 --> 02:01:55,330
state the legislature

3030
02:01:55,330 --> 02:01:56,330
overturned his wishes and then

3031
02:01:56,330 --> 02:01:58,330
his chances for the White

3032
02:01:58,330 --> 02:02:00,330
House would be reduced

3033
02:02:00,330 --> 02:02:02,330
to negative, perhaps,

3034
02:02:02,330 --> 02:02:04,330
if not zero. So just get it

3035
02:02:04,330 --> 02:02:06,330
off the agenda. So they got it

3036
02:02:06,330 --> 02:02:08,330
off the agenda, but the hue and

3037
02:02:08,330 --> 02:02:09,330
cry was such that then it came

3038
02:02:09,330 --> 02:02:11,330
back. It came back

3039
02:02:11,330 --> 02:02:13,330
for a vote slightly modified,

3040
02:02:13,330 --> 02:02:15,330
actually, quite a bit modified,

3041
02:02:15,330 --> 02:02:16,330
and there was hope. But what

3042
02:02:16,330 --> 02:02:18,330
they did was they didn't tell

3043
02:02:18,330 --> 02:02:20,330
people that today the vote will

3044
02:02:20,330 --> 02:02:22,330
be taken. And so only two

3045
02:02:22,330 --> 02:02:24,330
people were there who voted

3046
02:02:24,330 --> 02:02:26,330
for it, and they said,

3047
02:02:26,330 --> 02:02:28,330
that's not enough. So it has

3048
02:02:28,330 --> 02:02:30,330
died. I mean, these are

3049
02:02:30,330 --> 02:02:31,330
shenanigans that I had no clue

3050
02:02:31,330 --> 02:02:33,330
about. I mean,

3051
02:02:33,330 --> 02:02:35,330
this is very clever

3052
02:02:35,330 --> 02:02:37,330
manipulation

3053
02:02:38,330 --> 02:02:39,330
of public opinion. So hard

3054
02:02:39,330 --> 02:02:42,330
lesson here, right? I mean,

3055
02:02:42,330 --> 02:02:44,330
it's sort of. We're dealing

3056
02:02:44,330 --> 02:02:47,330
with a very tough. What should

3057
02:02:47,330 --> 02:02:49,330
we call it? Environment. I

3058
02:02:49,330 --> 02:02:51,330
mean,

3059
02:02:52,330 --> 02:02:54,330
I don't know what else to.

3060
02:02:54,330 --> 02:02:55,330
Political environment. I've

3061
02:02:55,330 --> 02:02:58,330
never seen it this bad

3062
02:02:58,330 --> 02:02:59,330
in any state of the union. So

3063
02:02:59,330 --> 02:03:01,330
how could California be doing

3064
02:03:01,330 --> 02:03:03,330
this?

3065
02:03:03,330 --> 02:03:05,330
>> You mentioned earlier there

3066
02:03:05,330 --> 02:03:07,330
hasn't been a movie

3067
02:03:07,330 --> 02:03:09,330
about this, but there actually

3068
02:03:09,330 --> 02:03:10,330
has been an investigative

3069
02:03:10,330 --> 02:03:12,330
series about all this and the

3070
02:03:12,330 --> 02:03:13,330
corruption and the tie

3071
02:03:13,330 --> 02:03:15,330
to the governor,

3072
02:03:15,330 --> 02:03:17,330
the broader issues.

3073
02:03:18,330 --> 02:03:20,330
>> Well, the bailout. Remember

3074
02:03:20,330 --> 02:03:22,330
the bailout?

3075
02:03:22,330 --> 02:03:23,330
>> Yes.

3076
02:03:23,330 --> 02:03:25,330
>> I mean, firepower, money,

3077
02:03:25,330 --> 02:03:27,330
it's been out there. It's so

3078
02:03:27,330 --> 02:03:29,330
ingrained. You know,

3079
02:03:29,330 --> 02:03:31,330
when this series came out,

3080
02:03:31,330 --> 02:03:33,330
I tried to share it and get

3081
02:03:33,330 --> 02:03:35,330
people. I don't understand it.

3082
02:03:35,330 --> 02:03:36,330
>> Would you share this

3083
02:03:36,330 --> 02:03:38,330
with me? Would you be able

3084
02:03:38,330 --> 02:03:40,330
to share that with me? The link

3085
02:03:40,330 --> 02:03:42,330
that she has?

3086
02:03:42,330 --> 02:03:43,330
>> I'm gonna check it out.

3087
02:03:43,330 --> 02:03:45,330
When did it come out?

3088
02:03:45,330 --> 02:03:47,330
>> The last most recent one

3089
02:03:47,330 --> 02:03:48,330
because it was a series 2022.

3090
02:03:48,330 --> 02:03:50,330
>> What's it called?

3091
02:03:50,330 --> 02:03:52,330
>> Firepower, buddy.

3092
02:03:53,330 --> 02:03:55,330
>> I can share the link

3093
02:03:55,330 --> 02:03:56,330
to you.

3094
02:03:56,330 --> 02:03:58,330
>> One where they looked.

3095
02:03:58,330 --> 02:04:00,330
Recovery for your fires.

3096
02:04:00,330 --> 02:04:02,330
>> Not used to your system.

3097
02:04:02,330 --> 02:04:03,330
Sorry.

3098
02:04:03,330 --> 02:04:05,330
>> So that's something else.

3099
02:04:05,330 --> 02:04:07,330
Did it generate some opinions?

3100
02:04:07,330 --> 02:04:09,330
>> Yeah. I mean, in my mind,

3101
02:04:09,330 --> 02:04:10,330
because this is. This was put

3102
02:04:10,330 --> 02:04:12,330
out prior

3103
02:04:12,330 --> 02:04:13,330
to the governor's reelection,

3104
02:04:13,330 --> 02:04:15,330
and I had hoped it would get

3105
02:04:15,330 --> 02:04:16,330
some traction,

3106
02:04:16,330 --> 02:04:18,330
and it didn't.

3107
02:04:18,330 --> 02:04:20,330
>> That is amazing.

3108
02:04:20,330 --> 02:04:21,330
>> I mean, it's sort

3109
02:04:21,330 --> 02:04:23,330
of disappointing to see all

3110
02:04:23,330 --> 02:04:25,330
of this happening in this

3111
02:04:25,330 --> 02:04:26,330
state. I would expect this

3112
02:04:26,330 --> 02:04:28,330
to happen in Missouri, you

3113
02:04:28,330 --> 02:04:30,330
know, not to pick

3114
02:04:30,330 --> 02:04:32,330
on any other state, but I have

3115
02:04:32,330 --> 02:04:34,330
to pick on one. And so I could

3116
02:04:34,330 --> 02:04:35,330
see it happening

3117
02:04:35,330 --> 02:04:37,330
in the deep south, but here,

3118
02:04:37,330 --> 02:04:39,330
it's just, I don't know what is

3119
02:04:39,330 --> 02:04:41,330
being achieved. Who's better

3120
02:04:41,330 --> 02:04:42,330
off? Power and money, you know,

3121
02:04:42,330 --> 02:04:44,330
they always go together,

3122
02:04:44,330 --> 02:04:46,330
don't they?

3123
02:04:46,330 --> 02:04:47,330
>> At one time,

3124
02:04:47,330 --> 02:04:49,330
had quite a public conversation

3125
02:04:49,330 --> 02:04:52,330
with some PG and e official,

3126
02:04:52,330 --> 02:04:53,330
so putting profit above

3127
02:04:53,330 --> 02:04:55,330
maintenance. I'm an old public

3128
02:04:55,330 --> 02:04:57,330
works guy. You know,

3129
02:04:57,330 --> 02:04:59,330
we're going

3130
02:05:00,330 --> 02:05:01,330
to pay our stakeholders

3131
02:05:01,330 --> 02:05:02,330
before we take care

3132
02:05:02,330 --> 02:05:03,330
of our equipment,

3133
02:05:03,330 --> 02:05:05,330
which led and right now, I'm

3134
02:05:05,330 --> 02:05:06,330
out of Nevada county, which is,

3135
02:05:06,330 --> 02:05:08,330
by the way, if you don't know,

3136
02:05:08,330 --> 02:05:10,330
this is the home of PG and E.

3137
02:05:10,330 --> 02:05:11,330
That's where PG and e came

3138
02:05:11,330 --> 02:05:13,330
from.

3139
02:05:13,330 --> 02:05:14,330
>> The original.

3140
02:05:14,330 --> 02:05:16,330
>> Came out of Nevada county.

3141
02:05:16,330 --> 02:05:18,330
Congratulations. And right now.

3142
02:05:18,330 --> 02:05:20,330
Right, right now,

3143
02:05:21,330 --> 02:05:22,330
we've got a failed dam,

3144
02:05:22,330 --> 02:05:23,330
a failed hydroelectric dam

3145
02:05:23,330 --> 02:05:25,330
by PG and E, who did not do

3146
02:05:25,330 --> 02:05:27,330
proper maintenance on

3147
02:05:27,330 --> 02:05:28,330
Spalding Lake. And you have an

3148
02:05:28,330 --> 02:05:30,330
entire county looking at

3149
02:05:30,330 --> 02:05:31,330
potential water restrictions

3150
02:05:31,330 --> 02:05:33,330
throughout the entire summer.

3151
02:05:33,330 --> 02:05:35,330
Two counties. Two counties,

3152
02:05:35,330 --> 02:05:37,330
yeah, that's right.

3153
02:05:37,330 --> 02:05:39,330
With the failure

3154
02:05:39,330 --> 02:05:40,330
to do proper maintenance at a

3155
02:05:40,330 --> 02:05:42,330
hydroelectric facility.

3156
02:05:42,330 --> 02:05:43,330
>> That's a recurring theme

3157
02:05:43,330 --> 02:05:45,330
through every analysis I have

3158
02:05:45,330 --> 02:05:46,330
read. And if you've seen the

3159
02:05:46,330 --> 02:05:48,330
book California burning, I

3160
02:05:48,330 --> 02:05:50,330
mean, actually,

3161
02:05:50,330 --> 02:05:51,330
she did a great job,

3162
02:05:51,330 --> 02:05:52,330
but still left out a lot. So I

3163
02:05:52,330 --> 02:05:53,330
sent her a lot

3164
02:05:53,330 --> 02:05:55,330
of material afterwards. She's

3165
02:05:55,330 --> 02:05:56,330
not from California, right? I

3166
02:05:56,330 --> 02:05:57,330
mean, she came

3167
02:05:57,330 --> 02:05:58,330
from another state, so.

3168
02:05:58,330 --> 02:06:00,330
But even she uncovered a lot.

3169
02:06:00,330 --> 02:06:01,330
And what does the CEO of PG and

3170
02:06:01,330 --> 02:06:03,330
E do when that book comes out?

3171
02:06:03,330 --> 02:06:04,330
Is obviously, you know,

3172
02:06:04,330 --> 02:06:06,330
a thorn in the side. She says,

3173
02:06:06,330 --> 02:06:07,330
oh, I have bought 100 copies

3174
02:06:07,330 --> 02:06:09,330
and distributed them to our

3175
02:06:09,330 --> 02:06:10,330
management so we can learn what

3176
02:06:10,330 --> 02:06:12,330
not to do.

3177
02:06:12,330 --> 02:06:14,330
>> I had a PG and E public

3178
02:06:14,330 --> 02:06:16,330
representative stand up at my

3179
02:06:16,330 --> 02:06:18,330
council meeting and say that

3180
02:06:18,330 --> 02:06:19,330
the new CEO is teaching them

3181
02:06:19,330 --> 02:06:21,330
all to lead from their heart.

3182
02:06:21,330 --> 02:06:23,330
My attorney thought I was going

3183
02:06:23,330 --> 02:06:24,330
to throw up on the dice.

3184
02:06:24,330 --> 02:06:26,330
>> It's amazing.

3185
02:06:26,330 --> 02:06:28,330
>> We just all accept it.

3186
02:06:28,330 --> 02:06:31,330
>> We also sitting here going,

3187
02:06:31,330 --> 02:06:33,330
well, what can we do

3188
02:06:33,330 --> 02:06:35,330
about it? It's just. That's the

3189
02:06:35,330 --> 02:06:37,330
way it is. It's too bad. And so

3190
02:06:37,330 --> 02:06:38,330
I guess the question we have, I

3191
02:06:38,330 --> 02:06:40,330
think the only solution is a

3192
02:06:40,330 --> 02:06:42,330
bypass. The only solution is a

3193
02:06:42,330 --> 02:06:45,330
bypass of the POC by going

3194
02:06:45,330 --> 02:06:46,330
through the legislature.

3195
02:06:46,330 --> 02:06:48,330
You've got to get the dirty

3196
02:06:48,330 --> 02:06:50,330
Harry out of it.

3197
02:06:50,330 --> 02:06:52,330
>> CPUC is unregulated.

3198
02:06:52,330 --> 02:06:54,330
>> It's sort of

3199
02:06:54,330 --> 02:06:56,330
like limitless rate increases,

3200
02:06:56,330 --> 02:06:57,330
no questions asked.

3201
02:06:57,330 --> 02:06:59,433
Apparently, there's some rule

3202
02:07:00,330 --> 02:07:02,330
that somebody told me,

3203
02:07:02,330 --> 02:07:03,330
they'll give you 85%

3204
02:07:03,330 --> 02:07:06,330
of whatever you ask. So you ask

3205
02:07:06,330 --> 02:07:08,330
125% to get the 85%. It's sort

3206
02:07:08,330 --> 02:07:09,330
of like back to the dark ages

3207
02:07:09,330 --> 02:07:12,330
of man, so to speak, where you

3208
02:07:12,330 --> 02:07:14,330
had special interests and they

3209
02:07:14,330 --> 02:07:16,330
had a code,

3210
02:07:18,330 --> 02:07:21,330
and you were not let

3211
02:07:21,330 --> 02:07:23,330
in unless you were part

3212
02:07:23,330 --> 02:07:25,330
of that group. And regardless

3213
02:07:25,330 --> 02:07:27,330
of what the public opinion was,

3214
02:07:27,330 --> 02:07:28,330
the king, or whoever it was,

3215
02:07:28,330 --> 02:07:30,330
the queen did whatever they

3216
02:07:30,330 --> 02:07:32,330
wanted to do.

3217
02:07:32,330 --> 02:07:34,330
But it was legitimized

3218
02:07:34,330 --> 02:07:35,330
by some stamp,

3219
02:07:35,330 --> 02:07:37,330
like some agency, the Public

3220
02:07:37,330 --> 02:07:38,330
Utilities Commission, back in

3221
02:07:38,330 --> 02:07:40,330
2015. It was the last time, I

3222
02:07:40,330 --> 02:07:42,330
think,

3223
02:07:42,330 --> 02:07:43,330
I testified there. I was

3224
02:07:43,330 --> 02:07:45,330
at a party, the night before,

3225
02:07:45,330 --> 02:07:47,330
and I said to my host, I have

3226
02:07:47,330 --> 02:07:48,330
to leave a bit early because I

3227
02:07:48,330 --> 02:07:50,330
am testifying tomorrow. Where

3228
02:07:50,330 --> 02:07:52,330
are you testifying? I said

3229
02:07:52,330 --> 02:07:54,330
before, the California Public

3230
02:07:54,330 --> 02:07:56,330
Utilities Commission. That's a

3231
02:07:56,330 --> 02:07:58,330
rogue agency. What are you

3232
02:07:58,330 --> 02:07:59,330
doing there? You lose your

3233
02:07:59,330 --> 02:08:01,330
reputation just by appearing

3234
02:08:01,330 --> 02:08:03,330
before them. I didn't even tell

3235
02:08:03,330 --> 02:08:04,330
them on whose behalf I was

3236
02:08:04,330 --> 02:08:06,330
testifying. Had I mentioned

3237
02:08:06,330 --> 02:08:07,330
that,

3238
02:08:07,330 --> 02:08:09,330
they would have kicked me out,

3239
02:08:09,330 --> 02:08:11,330
probably right away.

3240
02:08:11,330 --> 02:08:12,330
But I mean, these are very

3241
02:08:12,330 --> 02:08:14,330
unfortunate situations which

3242
02:08:14,330 --> 02:08:15,330
none of us really should be

3243
02:08:15,330 --> 02:08:17,330
discussing, except that we

3244
02:08:17,330 --> 02:08:19,330
can't avoid discussing them

3245
02:08:19,330 --> 02:08:20,330
because they define our

3246
02:08:20,330 --> 02:08:22,330
reality. I mean, ccas, one

3247
02:08:22,330 --> 02:08:23,330
of the reasons they came into

3248
02:08:23,330 --> 02:08:25,330
being was this reputational

3249
02:08:25,330 --> 02:08:26,330
damage that utilities,

3250
02:08:26,330 --> 02:08:28,330
actually, a while back, one

3251
02:08:28,330 --> 02:08:30,330
of them hired me to investigate

3252
02:08:30,330 --> 02:08:31,330
why CC's were being created.

3253
02:08:31,330 --> 02:08:33,330
And I said, okay, I need

3254
02:08:33,330 --> 02:08:35,330
to talk

3255
02:08:35,330 --> 02:08:37,330
to the decision makers,

3256
02:08:37,330 --> 02:08:39,330
the city governments, the

3257
02:08:39,330 --> 02:08:41,330
counties, municipalities. No,

3258
02:08:41,330 --> 02:08:42,330
we are not allowed. You can't

3259
02:08:42,330 --> 02:08:44,330
talk to them because they had

3260
02:08:44,330 --> 02:08:46,330
that legislative limit put

3261
02:08:46,330 --> 02:08:47,330
on them. So I said,

3262
02:08:47,330 --> 02:08:49,330
how am I supposed

3263
02:08:49,330 --> 02:08:51,330
to get the data? Then they

3264
02:08:51,330 --> 02:08:53,330
wanted me

3265
02:08:53,330 --> 02:08:55,330
to forecast the growth

3266
02:08:55,330 --> 02:08:58,330
of ccas. And I said,

3267
02:08:58,330 --> 02:09:00,330
how can I forecast

3268
02:09:00,330 --> 02:09:01,330
without data? That's why we

3269
02:09:01,330 --> 02:09:02,330
hired you. Oh, okay. So I found

3270
02:09:02,330 --> 02:09:04,330
a lot of data by reading.

3271
02:09:04,330 --> 02:09:06,330
Actually, somehow I should have

3272
02:09:06,330 --> 02:09:07,330
taken it that way.

3273
02:09:07,330 --> 02:09:09,330
But the dumb part of me said,

3274
02:09:09,330 --> 02:09:11,330
no, I have to do analysis.

3275
02:09:11,330 --> 02:09:13,330
Otherwise I could have just

3276
02:09:13,330 --> 02:09:15,330
said,

3277
02:09:15,330 --> 02:09:17,330
here's what the experts said.

3278
02:09:17,330 --> 02:09:19,330
Well, it turned

3279
02:09:19,330 --> 02:09:20,330
out there was a lot of data

3280
02:09:20,330 --> 02:09:22,330
in the public domain,

3281
02:09:22,330 --> 02:09:23,330
which was newspaper articles,

3282
02:09:23,330 --> 02:09:25,330
do master's theses written

3283
02:09:25,330 --> 02:09:27,330
on the topic. They had

3284
02:09:27,330 --> 02:09:28,330
interviewed the decision

3285
02:09:28,330 --> 02:09:30,330
makers. So I compiled a list of

3286
02:09:30,330 --> 02:09:31,330
factors that were leading

3287
02:09:31,330 --> 02:09:33,330
people to become ccas. The

3288
02:09:33,330 --> 02:09:34,330
first one was the high price

3289
02:09:34,330 --> 02:09:36,330
of electricity. Second one was

3290
02:09:36,330 --> 02:09:38,330
local content for the power.

3291
02:09:38,330 --> 02:09:40,330
The third was green content

3292
02:09:40,330 --> 02:09:42,330
for the power. And the fourth

3293
02:09:42,330 --> 02:09:43,330
one was, oh, a messiah came

3294
02:09:43,330 --> 02:09:46,330
to sell us on this idea as

3295
02:09:46,330 --> 02:09:48,330
being an intellectually

3296
02:09:48,330 --> 02:09:50,330
compelling thing to do. And the

3297
02:09:50,330 --> 02:09:53,330
fifth one was, the neighboring

3298
02:09:53,330 --> 02:09:54,330
community just did it. So I

3299
02:09:54,330 --> 02:09:56,330
listed these factors. That was

3300
02:09:56,330 --> 02:09:57,330
the best I could do. I'm sure

3301
02:09:57,330 --> 02:09:58,330
they knew all of this anyway,

3302
02:09:58,330 --> 02:10:00,330
so then one of them looked

3303
02:10:00,330 --> 02:10:01,330
at me and said, you left out

3304
02:10:01,330 --> 02:10:03,330
the most important factor. I

3305
02:10:03,330 --> 02:10:05,330
said, what is that,

3306
02:10:05,330 --> 02:10:07,330
anti utility sentiment? I said,

3307
02:10:07,330 --> 02:10:09,330
I wasn't going to mention it,

3308
02:10:09,330 --> 02:10:11,330
but since you mentioned it,

3309
02:10:11,330 --> 02:10:13,330
yes. I mean, they know it.

3310
02:10:13,330 --> 02:10:14,330
They know it. And I think

3311
02:10:14,330 --> 02:10:16,330
forecasts are indicating 80%

3312
02:10:16,330 --> 02:10:18,330
of California

3313
02:10:18,330 --> 02:10:19,330
at some point will be ccas.

3314
02:10:19,330 --> 02:10:21,330
So, you know, they brought it

3315
02:10:21,330 --> 02:10:22,330
upon themselves. They did.

3316
02:10:22,330 --> 02:10:24,330
>> But you'll continue

3317
02:10:24,330 --> 02:10:25,330
to see rate increases to cover

3318
02:10:25,330 --> 02:10:27,433
their operating costs while

3319
02:10:28,330 --> 02:10:30,330
their markets shrink.

3320
02:10:30,330 --> 02:10:32,330
>> That is correct.

3321
02:10:32,330 --> 02:10:34,330
>> That's what we've been

3322
02:10:34,330 --> 02:10:36,330
seeing. That's what we've been

3323
02:10:36,330 --> 02:10:39,330
seeing is their markets reduce,

3324
02:10:39,330 --> 02:10:41,330
the rates go.

3325
02:10:41,330 --> 02:10:43,330
>> I mean, we were talking

3326
02:10:43,330 --> 02:10:44,330
about the San Francisco

3327
02:10:44,330 --> 02:10:46,330
Chronicle. I had to buy a copy

3328
02:10:46,330 --> 02:10:47,330
the other day because there was

3329
02:10:47,330 --> 02:10:48,330
a particular nice editorial

3330
02:10:48,330 --> 02:10:49,330
in it. And I thought, okay,

3331
02:10:49,330 --> 02:10:51,330
I'll buy a hard copy. I paid

3332
02:10:51,330 --> 02:10:52,330
$3. First of all,

3333
02:10:52,330 --> 02:10:54,330
it took me many stores

3334
02:10:54,330 --> 02:10:56,330
to find one that sold it. Even

3335
02:10:56,330 --> 02:10:57,330
my library said,

3336
02:10:57,330 --> 02:10:59,330
today's issue has not come in.

3337
02:10:59,330 --> 02:11:00,330
I said, how could it be? They

3338
02:11:00,330 --> 02:11:02,330
said, it's somewhat random.

3339
02:11:02,330 --> 02:11:03,330
Some days it comes in. So, I

3340
02:11:03,330 --> 02:11:05,330
mean, tanking $3. So, I mean,

3341
02:11:05,330 --> 02:11:07,330
that tells you why people don't

3342
02:11:07,330 --> 02:11:09,330
think it through. The more you

3343
02:11:09,330 --> 02:11:11,330
raise your prices, the fewer

3344
02:11:11,330 --> 02:11:13,330
they will come. And then you'll

3345
02:11:13,330 --> 02:11:15,330
keep till you have one customer

3346
02:11:15,330 --> 02:11:18,330
paying a million dollars for

3347
02:11:18,330 --> 02:11:20,330
the Sunday Chronicle.

3348
02:11:20,330 --> 02:11:22,330
>> Doctor Farooqi,

3349
02:11:23,330 --> 02:11:25,330
thank you so much

3350
02:11:25,330 --> 02:11:26,330
for being here.

3351
02:11:26,330 --> 02:11:28,330
>> My pleasure.

3352
02:11:28,330 --> 02:11:29,330
>> We look forward to having

3353
02:11:29,330 --> 02:11:31,330
you back.

3354
02:11:31,330 --> 02:11:32,330
>> I appreciate it. The slides

3355
02:11:32,330 --> 02:11:34,330
will be shared,

3356
02:11:34,330 --> 02:11:36,330
and if there are any further

3357
02:11:36,330 --> 02:11:38,330
comments, reflections,

3358
02:11:38,330 --> 02:11:39,330
etcetera, I'm happy

3359
02:11:39,330 --> 02:11:40,330
to respond via email.

3360
02:11:40,330 --> 02:11:42,433
>> Thank you so much.

3361
02:11:43,330 --> 02:11:45,330
>> All right, I'll head out.

3362
02:11:45,330 --> 02:11:47,330
Thank you.

3363
02:11:47,330 --> 02:11:48,330
>> That was great. Thank you

3364
02:11:48,330 --> 02:11:49,330
very much, Don,

3365
02:11:49,330 --> 02:11:50,330
for having that scheduled.

3366
02:11:50,330 --> 02:11:51,330
Really enjoyed hearing from

3367
02:11:51,330 --> 02:11:53,330
Doctor Farooqi. Next item

3368
02:11:53,330 --> 02:11:54,330
on the agenda really quickly,

3369
02:11:54,330 --> 02:11:55,330
board member, communications. I

3370
02:11:55,330 --> 02:11:56,330
don't think we have any report

3371
02:11:56,330 --> 02:11:59,330
outs for committees, so. CEO

3372
02:11:59,330 --> 02:12:00,330
communications.

3373
02:12:00,330 --> 02:12:02,330
>> I'll keep this very brief,

3374
02:12:02,330 --> 02:12:03,330
but I do want to welcome. So

3375
02:12:03,330 --> 02:12:04,330
she actually started with us

3376
02:12:04,330 --> 02:12:06,330
in May,

3377
02:12:06,330 --> 02:12:07,330
but the meeting went long,

3378
02:12:07,330 --> 02:12:10,330
so we didn't get a chance

3379
02:12:10,330 --> 02:12:11,330
to introduce her. But Kelly

3380
02:12:11,330 --> 02:12:13,330
Neuer joined us as our customer

3381
02:12:13,330 --> 02:12:14,330
care coordinator,

3382
02:12:14,330 --> 02:12:15,330
and this was kind

3383
02:12:15,330 --> 02:12:17,330
of a stars lined up moment. So

3384
02:12:17,330 --> 02:12:20,633
she is from this area. She

3385
02:12:21,330 --> 02:12:23,330
worked at PCWA

3386
02:12:23,330 --> 02:12:24,330
for ten years and then kind

3387
02:12:24,330 --> 02:12:26,330
of took her career

3388
02:12:26,330 --> 02:12:27,330
across country to North

3389
02:12:27,330 --> 02:12:28,330
Carolina. And

3390
02:12:28,330 --> 02:12:30,330
at the same time that Alexia

3391
02:12:30,330 --> 02:12:31,330
retired, she was looking

3392
02:12:31,330 --> 02:12:33,330
to come back. So the stars

3393
02:12:33,330 --> 02:12:34,330
lined up and we were able

3394
02:12:34,330 --> 02:12:35,330
to make this happen. So, really

3395
02:12:35,330 --> 02:12:36,330
happy to have you here. And if

3396
02:12:36,330 --> 02:12:38,330
you're ever making a cross

3397
02:12:38,330 --> 02:12:39,330
country trip, she's done it

3398
02:12:39,330 --> 02:12:40,330
about six times,

3399
02:12:40,330 --> 02:12:41,330
so she knows where to stop. So

3400
02:12:41,330 --> 02:12:42,330
maybe you want

3401
02:12:42,330 --> 02:12:43,330
to make a quick introduction

3402
02:12:43,330 --> 02:12:45,330
to the board. Thank you,

3403
02:12:45,330 --> 02:12:46,330
Kelly.

3404
02:12:46,330 --> 02:12:47,330
>> Yes, I'm Kelly. And my last

3405
02:12:47,330 --> 02:12:50,330
job, I actually onboarded Sean

3406
02:12:50,330 --> 02:12:52,330
Loman, which was fun. So we've

3407
02:12:52,330 --> 02:12:54,330
had a lot

3408
02:12:55,330 --> 02:12:57,330
of history together,

3409
02:12:57,330 --> 02:12:59,330
but I'm really, really happy

3410
02:12:59,330 --> 02:13:00,330
to be here. When I was looking

3411
02:13:00,330 --> 02:13:02,330
to come back to California, I

3412
02:13:02,330 --> 02:13:03,330
had a list

3413
02:13:03,330 --> 02:13:05,330
of things that I wanted in the

3414
02:13:05,330 --> 02:13:08,330
company that I worked for. I

3415
02:13:08,330 --> 02:13:09,330
wanted it to be small enough

3416
02:13:09,330 --> 02:13:10,330
that I mattered and could make

3417
02:13:10,330 --> 02:13:11,330
an impact. I wanted it to be

3418
02:13:11,330 --> 02:13:12,330
local because this is my

3419
02:13:12,330 --> 02:13:14,330
community and I wanted it to be

3420
02:13:14,330 --> 02:13:15,330
something that actually did

3421
02:13:15,330 --> 02:13:16,330
something good for people. So

3422
02:13:16,330 --> 02:13:19,330
if I was going to be part of

3423
02:13:19,330 --> 02:13:21,330
writing copy or marketing or

3424
02:13:21,330 --> 02:13:22,330
anything else, I wanted it to

3425
02:13:22,330 --> 02:13:24,330
be that something that was

3426
02:13:24,330 --> 02:13:26,330
actually good for the people

3427
02:13:26,330 --> 02:13:28,330
and then I stumbled on Pioneer

3428
02:13:28,330 --> 02:13:31,330
and told my whole family,

3429
02:13:31,330 --> 02:13:33,330
I'm applying for this job. I

3430
02:13:33,330 --> 02:13:34,330
was so excited. I'm very happy

3431
02:13:34,330 --> 02:13:37,330
to be here. Thank you

3432
02:13:37,330 --> 02:13:38,330
for having me.

3433
02:13:38,330 --> 02:13:40,330
>> Thank you, Kelly. And second

3434
02:13:40,330 --> 02:13:41,330
new hire I'd like

3435
02:13:41,330 --> 02:13:42,330
to introduce is Jake

3436
02:13:42,330 --> 02:13:43,330
Trumbull. He comes to us as our

3437
02:13:43,330 --> 02:13:44,330
communications coordinator. He

3438
02:13:44,330 --> 02:13:46,330
also spent

3439
02:13:46,330 --> 02:13:47,330
over a year as an internship

3440
02:13:47,330 --> 02:13:49,330
at intel working in the

3441
02:13:49,330 --> 02:13:51,330
marketing and outreach areas.

3442
02:13:51,330 --> 02:13:52,330
He also previously worked

3443
02:13:52,330 --> 02:13:54,330
for a demolition company. If

3444
02:13:54,330 --> 02:13:56,330
you need something blowing up,

3445
02:13:56,330 --> 02:13:57,330
he'll help you with that.

3446
02:13:57,330 --> 02:13:59,330
Anyway, please, Jake.

3447
02:13:59,330 --> 02:14:01,330
>> Demolition for hire here.

3448
02:14:01,330 --> 02:14:04,330
No, really excited to join

3449
02:14:04,330 --> 02:14:06,330
everybody here. I graduated

3450
02:14:06,330 --> 02:14:08,330
from Sac State

3451
02:14:08,330 --> 02:14:10,330
about a year ago now

3452
02:14:10,330 --> 02:14:12,330
with a degree

3453
02:14:12,330 --> 02:14:14,330
in public relations. Excited

3454
02:14:14,330 --> 02:14:16,330
to join the communications team

3455
02:14:16,330 --> 02:14:18,330
with Kelly, Gina, Lisa, and so

3456
02:14:18,330 --> 02:14:19,330
many more. Just ready to get

3457
02:14:19,330 --> 02:14:20,330
to work for you guys.

3458
02:14:20,330 --> 02:14:22,330
>> Thank you.

3459
02:14:22,330 --> 02:14:24,330
>> Thank you, Jay. Just want to

3460
02:14:24,330 --> 02:14:25,330
also announce that starting

3461
02:14:25,330 --> 02:14:27,330
tonight,

3462
02:14:27,330 --> 02:14:28,330
throughout the weekend last two

3463
02:14:28,330 --> 02:14:30,330
years, we were present at the

3464
02:14:30,330 --> 02:14:32,330
El Dorado Fair, and this year

3465
02:14:32,330 --> 02:14:33,330
we're doing placer.

3466
02:14:33,330 --> 02:14:35,330
But we did do a sponsorship

3467
02:14:35,330 --> 02:14:36,330
at El Dorado Fair as well. And

3468
02:14:36,330 --> 02:14:38,330
we saw you last week,

3469
02:14:38,330 --> 02:14:39,330
staff did. So we'll be there

3470
02:14:39,330 --> 02:14:41,330
at a booth. Please stop

3471
02:14:41,330 --> 02:14:42,330
by if you're in the area. And

3472
02:14:42,330 --> 02:14:44,330
one more announcement would be

3473
02:14:44,330 --> 02:14:46,330
that this will be our last

3474
02:14:46,330 --> 02:14:47,330
meeting with Patrick as our

3475
02:14:47,330 --> 02:14:49,330
general counsel. I just want

3476
02:14:49,330 --> 02:14:51,330
to say thank you so much

3477
02:14:51,330 --> 02:14:53,330
for all the work that you and

3478
02:14:53,330 --> 02:14:54,330
Richard Watson, Kishan and your

3479
02:14:54,330 --> 02:14:56,330
other folks

3480
02:14:56,330 --> 02:14:57,330
at the firm have done

3481
02:14:57,330 --> 02:14:59,330
in supporting Pioneer. And we

3482
02:14:59,330 --> 02:15:00,330
did go

3483
02:15:00,330 --> 02:15:02,330
through an RFP process,

3484
02:15:02,330 --> 02:15:04,330
and it was about that time

3485
02:15:04,330 --> 02:15:06,330
to do it. And we're going

3486
02:15:06,330 --> 02:15:08,330
with a more local firm in

3487
02:15:08,330 --> 02:15:10,330
Grass Valley that we'll be

3488
02:15:10,330 --> 02:15:11,330
introduced to next month.

3489
02:15:11,330 --> 02:15:12,330
But again, I want

3490
02:15:12,330 --> 02:15:13,330
to just thank Patrick

3491
02:15:13,330 --> 02:15:14,330
for contributing

3492
02:15:14,330 --> 02:15:15,330
to our success. And that's it

3493
02:15:15,330 --> 02:15:17,330
for my report.

3494
02:15:17,330 --> 02:15:19,330
>> I just want

3495
02:15:19,330 --> 02:15:20,330
to say thank you. It's been a

3496
02:15:20,330 --> 02:15:21,330
pleasure working with you the

3497
02:15:21,330 --> 02:15:22,330
last five and a half,

3498
02:15:22,330 --> 02:15:23,330
six months. Staff has been

3499
02:15:23,330 --> 02:15:25,330
great. All of them. Teresa has

3500
02:15:25,330 --> 02:15:27,330
been great, Brad and all

3501
02:15:27,330 --> 02:15:29,330
of them have been great. So I

3502
02:15:29,330 --> 02:15:30,330
really appreciated the

3503
02:15:30,330 --> 02:15:32,330
opportunity and wish you all

3504
02:15:32,330 --> 02:15:33,330
the best of luck.

3505
02:15:33,330 --> 02:15:35,330
>> Thank you, Patrick.

3506
02:15:35,330 --> 02:15:36,330
We really appreciate all

3507
02:15:36,330 --> 02:15:38,330
your service to us. So thank

3508
02:15:38,330 --> 02:15:39,330
you.

3509
02:15:39,330 --> 02:15:41,330
>> And that's it for my report.

3510
02:15:41,330 --> 02:15:42,330
>> All right, with that said,

3511
02:15:42,330 --> 02:15:43,330
seeing nothing further

3512
02:15:43,330 --> 02:15:44,330
on the agenda,

3513
02:15:44,330 --> 02:15:45,330
we will hereby adjourn

3514
02:15:45,330 --> 02:15:47,330
without objection. That's the

3515
02:15:47,330 --> 02:15:49,330
order. Adjourn 4:44.