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METRO TV WILL GET STARTED IN 60 SECONDS.[00:29:35]
PEACE WELCOME TO THE PARKS AND SUSTAINABILITY COMMITTEE. TODAY IS THURSDAY, OCTOBER 5TH 2023,[00:29:41]
THE TIME IS CURRENTLY 307. PM I'M CHAIRMAN JO COREY ARTHUR JOINING US VIRTUALLY WE HAVE[00:29:48]
VICE CHAIR MARILYN PARKER. WE ALSO HAVE COMMITTEE MEMBERS FOWLER AND RUI IN CHAMBERS.[00:29:54]
COMMITTEE MEMBERS BAT. SHAWN HUDSON, MULVIHILL AND BAKER HAVE EXCUSED ABSENCES. THIS MEETING[00:30:01]
HAS BEEN HELD PURSUANT TO KRS 61.826 AND COUNCIL RULE FIVE. THEY WILL WORK BACKWARDS, STARTING WITH ITEM NUMBER TWO, A RESOLUTION AUTHORIZING THE MAYOR TO ACCEPT $12 MILLION FROM THE U. S DEPARTMENT OF AGRICULTURE'S FORCE SERVICE. THROUGH THE URBAN AND COMMUNITY FORESTRY PROGRAM TO EXPAND ACCESS TO TREES AND GREEN SPACES AND COMMUNITIES AND NEIGHBORHOODS TO BE ADMINISTERED BY THE DEPARTMENT OF PARKS AND RECREATION. HAVE EMOTIONS. WHO SECOND, PLEASE. THANK YOU SO MUCH. SO WE DO NOT HAVE A QUORUM TO VOTE ON THIS, LIKE NORMAL, SO WE CAN DISCUSS IT FOR A BIT AND THEN WE'LL SEND IT TO THE COUNCIL WITHOUT A RECOMMENDATION AND PUT IT ON HOLD BUSINESS. I KNOW WE HAVE SOMEONE FROM THE ADMINISTRATION HERE TO TALK ABOUT THIS BEFORE I PASS YOU THE MIKE. I JUST WANT TO POINT OUT THAT THIS IS REALLY EXTRAORDINARY. WHEN I SAW THE NEWS. I WAS IMPRESSED AND THROUGH MY NAME ON IT, BECAUSE LOUISVILLE BUT SPECIFICALLY METRO COUNCIL DISTRICT FOR WE ARE IN CRISIS WHEN IT COMES TO OUR LACK OF TREE CANOPY AND OUR LACK OF GREEN SPACE, SO I'M VERY PROUD OF THIS WORK AND JUST WANTED TO EXPRESS SO MUCH LOVE FOR EVERYBODY WHO WORKED ON IT WAS A PART OF MAKING IT HAPPEN, BUT I'LL PASS THE MIC TO YOU NAME TITLE FOR THE RECORD AND TELL US WHAT WE GOT IN FRONT OF US. THANK YOU SO MUCH. I AM MISTER. THAT WAS RECALLED, UM, ASSISTANT DIRECTOR WORKS AND RECREATION DEPARTMENT. THANK YOU FOR BEING HERE. THANK YOU SO MUCH FOR LIVING IN HERE. SHOULD I CONTINUE? YES, PLEASE. WELL FIRST OF ALL, UM, THANK YOU SO MUCH. ORGANIZED KIND WORDS. UM I'M VERY PROUD OF OUR FOREST RIPPING IS BILL WHO IS EXCELLENTLY GRACE IN AFRICA, PUTTING THIS PROPOSAL TOGETHER.UM AND JUST WORKING REALLY HARD ON THIS AND THANK YOU SO MUCH FOR ALL OF THE SUPPORT WE RECEIVED FROM SEVERAL DIFFERENT PARTNERS. UM AGENCIES IN INDIVIDUALS DURING THIS PROCESS.
SO WE PUT THIS PROPOSAL TOGETHER. END OF MAY. WITH THE HOPE THAT THIS IS GOING TO BE A GREAT OPPORTUNITY TO INCREASE THE URBAN STREAK IN A BIG COVERAGE IN LOUISVILLE. UM AND BE NAMED OUR PROPOSAL. UM AS HMM . GOOGLE EQUITABLE FIRST IN SUGAR. SO IT'S BASICALLY LEVY THE NAME OF THE PROGRAM SO LIVE . HE HAS SEVERAL DIFFERENT FROM POLAND. THE BIGGEST PART OF IT IS GOING TO BE WHO THEY EMANATED BURDEN. TO MAINTAIN TREES ON STREET RIGHT AWAYS. SO THE PROPOSAL THE PROGRAM INCLUDES SOME, UM, MAINTENANCE COMPONENTS TO WORK ON NATURE, PLEASE YOUNG FREEZE AFTER THANKING THEM AS WE ALL KNOW THAT, UM TRAINING ALONG STREET RIGHT AWAY IS THE RESPONSIBILITY OF THE BODY APPROPRIATE ORDERS. WHAT WE'RE EXPERIENCING IS, UM IN MOST CASES, UM RESIDENTS ARE EITHER OR NOT, UM, EQUIPPED AND CAPABLE OF MAINTAINING THOSE THREES AND, UM IT'S DEFINITELY PUTS US BEHIND FROM INCREASING OUR TREE CANOPY COVERAGE IN THOSE, UM ESPECIALLY IN THOSE AREAS THAT ARE IN DISNEY'S, SO THE PROPOSAL IS PULLING FOR UM, LIKE SOME MONEY, UM TO HELP. INDIVIDUALS ESPECIALLY IN JUSTICE FOR THE AREAS TO PROVIDE THEM AS JUST THOSE UM, THIS IS ONLY ONE PROGRAM AND THEN WE WILL ALSO BE PLANTING. FREEZE. UM FOLLOWING FIVE YEARS AND THEN WORK WITH OUR RESERVOIRS TOGETHER. SO UM THE OTHER COMPONENTS OF THE PROGRAM IS INCLUDING PERHAPS A DREAM ALREADY INJUSTICE FOR THE AREAS AS WELL WITH THE WHOLE SECTION CAN PULL OF. MANAGEMENT PROGRAM OVER FORSTER MANAGEMENT PROGRAM FOR, UM, INTERNET ILLEGAL AREA, THE GRAPH IS GONNA COVER JUSTICE 40 AREAS. UM AND OTHER COMPONENTS OF THE PROGRAM IS GOING TO BE MORE MENTAL EDUCATION AND ACCESS TO NATURE FOR THOSE AREAS, AND WE WILL ALSO BE WORKING NUMBER FIRST TO OPEN THE PROGRAM. UM I'LL HURT YOU IN THE INDUSTRY IS DOMINATED PARTIES. YOU KNOW, CAUCASIAN AND MILL INDIVIDUALS, AND THEY'RE HOPING THAT PEOPLE BRING SOME EQUITY TO THE WORKFORCE BY PROVIDING SOME EDUCATION SCREENING, BRINGING PEOPLE
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TOGETHER TO TEACH THEM ARE BICULTURAL HORTICULTURAL AND SOME ENVIRONMENTAL EXPERIENCED WORKING WITH PARTNERS. SO THIS IS BASICALLY THE PROGRAM. IN A NUTSHELL. YOU CAN GO DEEP HEARD AS IT IS DESIRED, BUT WE'RE HOPING ALSO WITH THE MONEY TO HER RECEIVING PEOPLE HOPEFULLY INCREASE THE RESOURCES THEY HAVE IN URBAN FORESTRY HIM BY BRINGING. FIVE FULL TIME EMPLOYEES FOR THE FOLLOWING FIVE YEARS, UM, TO THEM WILL BE WORKING. UM. TO PLANT AND MAINTAINED FREEZE AND THEN ONE OF THEM IS GOING TO BE MINISTER . OSTRICH PROGRAM AND THE OTHER IS GOING TO BE FOR, UM JUST A LITTLE THING, WORKFORCE AND PROVIDING TRAINING TO THE GLOBE . OF COURSE. SO UM, THE FIFTH INDIVIDUAL WILL BE WORKING ON, UM. DEVELOPING A PROGRAM FOR CHILDREN, SO IT'S GOING TO BE CONTINUOUS EFFORT FOR OUR, UM CHILDREN PROGRAM FOR JEFFERSON HORSE INITIAL AREAS. I'M HAPPY TO ANSWER ANY OTHER QUESTIONS TO ME. I DON'T SEE ANYONE IN THE QUEUE WITH QUESTIONS COMMITTEE MEMBER FOWLER PURSUED A GREAT JOB AND I'M VERY HAPPY THAT YOU WERE ABLE TO, UM, WRITE THE GRANT AND MAKE IT HAPPEN. CONGRATULATIONS. I'M WONDERING IF ANY OF THE FOREST OR IS THIS GOING TO COVER ANY OF THE FORESTRY? UM VACANCIES THAT WE HAVE. UNFORTUNATELY, NOT, UM. THIS IS GONNA BE ADDITIONAL. FOR INDIVIDUALS FOR URBAN FORESTRY, BUT IT WILL NOT PLACE THE VACANCIES FEED FROM HAVING URBAN POST STREET. UM HAVE WE BEEN HERE LOOKING WITH THE WORKFORCE IF IMPOSED THE WORK PERSONAL PROGRAM. WE'RE HOPING THAT UM WE WILL TRAIN SOME INDIVIDUALS. RHYTHM FOR THAT THEY CAN BE, UM , INTERVIEW AND WORK WITH US IN THE FUTURE, BUT, UM IT'S NOT GOING TO BE LIKE FILLING THOSE VACANCIES IMMEDIATELY. OKAY UM SO IN AREAS REALLY? THIS IS OFF TOPIC, BUT HAVE YOU WORKED WITH ANYBODY TO REWRITE THOSE, UM, JOB DESCRIPTIONS TO HELP US? MAYBE GET MORE MONEY. UM TO COVER THE COST OF THE INCREASING COST OF THOSE FORESTERS. WE ARE WORKING WITH OUR NATURAL HR. OKAY, TOO. UM. BRILLIANT SOLUTION THAT DIFFICULTY. THOSE VACANCIES ARE UNION POSITIONS. UM OKAY. IT'S STILL NOT ACQUIRE SOME WORK FOR US TO BE ABLE TO CHANGE ANYTHING. YEAH WELL, LET ME KNOW IF YOU NEED ANY HELP WITH THAT. I'M HAPPY TO HELP AND CONGRATULATIONS AGAIN. THANK YOU FOR DOING IT. VICE CHAIR, PARKER. THANK YOU. I WAS KIDDING SPEAKER, BUT NOTHING WAS HAPPENING SO AWAY WORK THROUGH THINGS. UM YES, DURING YOUR, UM I'LL JUST SAY, MASOUDI. THANK YOU. THIS SOUNDS WONDERFUL. UM I KNOW PART OF THE GRANT IS, I GUESS TO IDENTIFY WHERE THE TREES ARE GOING TO GO. AND YOU MAY HAVE ALREADY SAID THAT, BUT UM SO ONCE YOU IDENTIFY THOSE AREAS HAVE IS IT POSSIBLE TO GET LIKE COMMUNITY INVOLVEMENT TO COME OUT FOR LIKE THE TREE PLANTINGS? TO ASSIST WITH MAYBE SOME FREE HELP AND COMMUNITY INVOLVEMENT. ABSOLUTELY ABSOLUTELY, UM, ONE OF THE POSITIONS THAT WILL BE, UM. EDIT TO THE TEAM WILL BE COMMUTER CARTRIDGE. UH COORDINATOR AND WE'RE REALLY RELATABLE THING TO, UM, HELP OUR COMMUNITY TO, UM GET INVOLVED EVEN MORE, AND THAT INDIVIDUAL WILL HELP US TO DEVELOP THIS STEWARDSHIP AND, YOU KNOW, PROVIDE MORE, UM, ACCESS TO OUR COMMUNITY MEMBERS TO GET INVOLVED IN THOSE PROGRAMS. THE URBAN FOURTH STREET IS UM, PLANNING TO HAVE SEVERAL DIFFERENT VOLUNTEER PLANTING THIS ANYWAY. IT IS ON OUR WEBSITE, BUT WE'RE REALLY HOPING TO INCREASE THE COMMUNITY INVOLVEMENT IN THEIR VOICES TO[00:40:01]
BE HEARD WITH THIS PROGRAM BY HAVING A INDIVIDUAL, UM, TASKED WITH THAT. HOPEFULLY THAT JOB JUST DO WORK WITH THE INDIVIDUALS OR THE COMMUNITIES, YOU KNOW DIRECTLY, SO I REALLY HOPE THAT THIS IS GOING TO INCREASE COMMUNITY IS A MOMENT. SO MUCH. ALRIGHT AGAINST I'M SORRY. MY CONNECTIONS, YOU KNOW , VOICES, THEY FLOW. UM I'M IN A TUNNEL SETTING, SO I'M TRYING TO JUST I DON'T KNOW OF YOUR, UM CONNECTIONS THERE, BUT I HOPE YOU CAN HEAR ME CLEARLY CAN HEAR YOU. THANK YOU SO MUCH AND AGAIN. CONGRATULATIONS. SINCE WE DON'T HAVE A QUORUM WILL HAVE A VOICE VOTE TO SEND THIS TO THE NEXT COUNCIL MEETING ON OLD BUSINESS WITHOUT A RECOMMENDATION. ALL IN FAVOR, SAY AYE. ALRIGHT. ANY OPPOSED? IT'LL BE ON OLD BUSINESS. THANK YOU SO MUCH, DIRECTOR AND CONGRATULATIONS AND BEFORE WE MOVE ONTO THE NEXT ITEM, I WANT TO SHOUT OUT TO TREES. LOUISVILLE WHO'S BRINGING BACK TREE WEEK BETWEEN OCTOBER 7TH AND 14TH THIS MONTH. THEY HAVE EDUCATIONAL MATERIALS, EVENTS AND ACTIVITIES ON THEIR WEBSITE TREES, LOUISVILLE .ORG. SO, PLEASE, PLEASE, PLEASE. JOIN US IN PARTICIPATING IN THAT NEXT IS ITEM NUMBER ONE SPECIAL DISCUSSION WITH LOUISVILLE GAS AND ELECTRIC ABOUT RENEWABLE ENERGY. WELCOME TO CITY HALL. PLEASE SAY YOUR NAME ENTITLED FOR THE RECORD. OKAY? MY NAME IS DAVID SINCLAIR AND VICE PRESIDENT. ENERGY SUPPLY AND ANALYSIS AND WITH ME TODAY IS MY COLLEAGUE MR CHUCK SCHRAMM. HE WAS DIRECTOR OF ENERGY SUPPLY POWER SUPPLY. ALRIGHT YOU CAN COME ON UP TO THIS DESK HERE. MAKE SURE YOU SPEAK DIRECTLY INTO THE MICROPHONE. SO I'M GOING TO PASS THE MIC TO COMMITTEE MEMBER RUI TO JUST GET A SET UP BECAUSE SHE INVITED YOU ALL HERE. WE'RE HAPPY TO HAVE YOU HERE AND THEN I SEE YOU HAVE A PRESENTATION, AND THEN WE'LL GET INTO SOME QUESTIONS, RIGHT? OKAY? THANK YOU VERY MUCH, MR SINCLAIR AND MR SCHRAMM FOR COMING TODAY. I'M UNDERSTAND. IT'S TOUGH TO PUT THINGS INTO YOUR BUSY SCHEDULE, SO WE REALLY APPRECIATE YOUR COMING THE ESSENTIAL QUESTION WE'VE GOT FOR TODAY WAS LOUISVILLE METRO WAS COMMITTED TO USING 100% RENEWABLE ENERGY BY 2040. WE WANTED AN UPDATE ABOUT L G AND N K. YOU AND HOW YOU ALL ARE HELPING US REACH THAT GOAL. SO I LOOK FORWARD TO SEEING WHAT YOU'VE GOT TO SHOW FOR US TODAY. THANK YOU VERY MUCH. WELL, GREAT. WELL FIRST OF ALL, ON BEHALF OF ALL EMPLOYEES, WILL J AND K U. I WANT TO THANK YOU FOR THE OPPORTUNITY TO SPEAK WITH YOU. UM YOU KNOW, I HAD THE OPPORTUNITY TO SPEAK TO THIS COMMITTEE BACK IN 2018 AND 2019 WHEN THE RESOLUTION IS BEING DEVELOPED. AND SO A LOT HAS HAPPENED SINCE I WAS HERE LAST IN OCTOBER. 2019 SO THAT'S WHY I WANT TO TALK TO YOU ABOUT TODAY. UH WE'RE GONNA TAG TEAM THIS A LITTLE BIT, MR. SCHRAMM, UM HE HAS RESPONSIBILITY FOR BOTH OUR REAL TIME GENERATION OPERATIONS AS WELL AS OUR HOST ELECTRICITY ACTIVITIES, SO HE AND HIS TEAM HE'S GONNA TALK ABOUT SOME MORE DETAIL HAVE NEGOTIATED APPROXIMATELY 900 MEGAWATTS OF SOLAR PURCHASE POWER AGREEMENTS , SO HE'S GONNA GO A LITTLE MORE DETAIL OF WHAT'S GOING ON WITH THOSE PROJECTS. UH TODAY, SO JUST MOVING TO SLIDE ONE REAL QUICK, JUST A LITTLE BIT OF BACKGROUND BECAUSE I THINK IT'S IMPORTANT TO EVERYBODY TO UNDERSTAND YOUR Y L G AND K U IS HERE AND HAS TO PROVIDE A SAFE, RELIABLE ENERGY AT THE LOWEST COST. AND LIKE ANY BUSINESS, EVERYTHING STARTS FIRST WITH CUSTOMERS AND WE DO SERVE A DIVERSE BASE OF CUSTOMERS AND WITH DIFFERENT ENERGY NEEDS EVERYTHING RESIDENCES TO BUSINESSES AND HIGH USAGE INDUSTRIALS WE ACTUALLY TAKE ON THE SLIDE. WE SERVED MORE THAN ONE HOSPITAL HOSPITALS. BUT REGARDLESS AND ALL THOSE DIFFERENT INDUSTRY OR DIFFERENT INDUSTRIES AND BUSINESSES AND CONSUMERS HAVE DIFFERENT NEEDS FOR POWER. THEY HAVE SOME OF THEM ALL ELECTRIC SOMEWHERE DUAL ENERGY SOMEHOW WE'RE GAS, ONLY CUSTOMERS THAT WE SERVE TO GET ELECTRICITY FROM SOMEBODY ELSE. AND SO THE THING ABOUT THE POWER INDUSTRY IS THE ULTIMATE JUST IN TIME PRODUCT IS THAT WHENEVER SOMEBODY FLIPS A SWITCH SOMEWHERE GENERATORS REACTING TO THAT IT'S ONE THING. MR SCHRAMM'S GROUP DOES MAKE SURE WE HAVE THE RIGHT UNITS ONLINE TO PROVIDE THAT RELIABILITY AND LOWEST COST. SO THE KEY THEN IS TO SERVE THAT CUSTOMER KNEE WAS CHANGES BY TIME OF DAY SEASONS. THEY ARE THE WEEK ETCETERA IS WE HAVE TO HAVE A GENERATION PORTFOLIO THAT RELIABLY SERVES THAT NEED AROUND THE CLOCK AND ALL WEATHER CONDITIONS, AND SO WHEN WE LOOK AT DIFFERENT GENERATION TECHNOLOGIES, THEY HAVE DIFFERENT CAPABILITIES. AND SO THE KEY IN GENERATION PLANNING, WHICH ONE OF THE RESPONSIBILITIES I HAVE IS TO MAKE SURE WE BUILD THAT PORTFOLIO TECHNOLOGIES THAT WORKED WELL TOGETHER. ACCOMPLISH THAT SO THAT WE CAN START AND STOP WHEN WE NEED TO MOVE AROUND IN TIME THEY HAD THE RIGHT OPERATING COSTS. UH THEY CAN MOVE QUICKLY OR OR NOT. SO THIS IS A GREAT EXAMPLE. WEATHER WISE EARLIER THIS WEEK AND TODAY IT'S BEEN PRETTY WARM. SO OUR CUSTOMERS NEEDS HAVE BEEN VERY MUCH IN THE AFTERNOON HAS BEEN VERY HOT AIR CONDITIONING IS[00:45:03]
VERY HIGH, SO THE IT STARTS OUT LOW IN THE MORNING AND PEAKS IN THE AFTERNOON. AS YOU MAY KNOW, THE WEATHER IS GOING TO TURN VERY COLD. COME FRIDAY NIGHT, SATURDAY MORNING. SO WHAT WE'RE GOING TO SEE COME SATURDAY WEEKENDS A LITTLE BIT DIFFERENT SHAPE ANYWAY, BECAUSE A LOT OF BUSINESSES OR INDUSTRIES ARE CLOSED ON SATURDAYS, SO WE'RE GOING TO SEE HIS PROBABLY HUMANS DOWN THE LOW FORTIES UPPER THIRTIES IN SOME AREAS. CUSTOMERS ARE GONNA TURN THE HEAT ON OTHER THINGS ON SATURDAY MORNINGS CURRENCY KIND OF PEAKED MORE IN THE MORNING ON SATURDAY , AND IT'S GONNA FALL OFF A LITTLE BIT AS THE SUN RISES AND IT WARMS UP, SO WE HAVE TO HAVE THE UNITS THAT MOVE AND RESPOND TO THAT IN REAL TIME THAT PLAYED THEIR ECONOMIC AND OPERATING STRENGTHS. SO BACK TO THE METRO COUNCIL RESOLUTION, SO THAT'S KIND OF A BACKGROUND. IS THAT JUST TO REMIND EVERYBODY IN CASE SOME OF THE FOLKS WEREN'T HERE BACK IN THAT TIME PERIOD IS REALLY AT THREE PHASES TO IT. THE FIRST PHASES FOCUSED ON CLEAN ELECTRICITY FROM METRO GOVERNMENT OPERATIONS BY 2030. BY 2035 THAT'S CLEAN ENERGY ACROSS METRO GOVERNMENT OPERATIONS AND BY 2040. IT'S COMMUNITY WIDE. THE RESOLUTION CLEANS DEFINED A LOT OF WORDS BUT BOILS DOWN TO BASICALLY RENEWABLES AND FOSSIL FUELS WITH NET ZERO EMISSIONS. SO WHEN WE LOOK AT THIS ALSO THAT 100% IS DEFINED IN THE RESOLUTION AS AN ANNUAL NUMBER, NOT IN REAL TIME, AND THAT'S VERY IMPORTANT TO UNDERSTAND THAT DISTINCTION. THAT'S ONE OF THINGS WE TALKED ABOUT BACK IN 2019 WHEN I WAS HERE IS THAT A LOT OF FOLKS COMMUNITY FOCUSED ON 100% OF BUSINESSES FOCUS ON 100% IS JUST ON AN ANNUAL BASIS BECAUSE SERVING LOAD AND ENERGY NEEDS IN REAL TIME. IS A LOT MORE COMPLICATED, A LOT MORE INVOLVED IN SERVING ITS ANNUAL BASIS JUST ON ACCOUNTING. WHAT'S 100% SO KEEP THAT IN MIND 100, NOT REAL TIME. SO WE LOOKED AT LAST YEAR METRO LOUISVILLE GOVERNMENT OPERATIONS USED ABOUT 92,000 MEGAWATT HOURS AT 1.3 MILLION CUBIC FEET OF NATURAL GAS. PUT THAT IN PERSPECTIVE ON AN ANNUAL BASIS. IF YOU WERE TO USE A SOLAR PLANT AT THE UTILITY SCALE. TO SERVE 92,000 MEGAWATT HOURS YOU WOULD NEED ABOUT 40 PLUS MEGAWATTS OF SOLAR TO DO THAT AN ANNUAL BASIS. AH! IF IT WAS MORE ROOFTOP, WHICH HAS TEND TO HAVE LOWER CAPACITY FACTOR, BECAUSE NOW IT'S OPTIMIST CAPTURE THE SON THAT WOULD BE PROBABLY CLOSER TO 70 MEGAWATTS. SO THAT'S THE FIRST FOCUS ON 100% CLEAN BY 2030 IS REALLY FOCUSING ON THE ELECTRICITY SIDE. NOW THE 2035 WERE USED TO CLEAN ENERGY. THAT'S WHERE THE GAS SITUATION IS GOING TO HAVE TO BE ADDRESSED AT SOME POINT, WHICH MEANS THE CITY NEEDS TO BE LOOKING AT HOW IT TRANSITIONS FROM ITS GAS USAGE TO ELECTRICITY. I'M GUESSING THE GAS USAGE IS PRIMARILY FOR WATER, HEATING AND SPACE. HEATING UH, BUT THAT WOULD BE SOMETHING THAT WOULD BE SOMETHING THAT CITY AT SOME POINT NEED TO START TO FOCUS ON.SO MOVING FORWARD. WHAT HAVE WE BEEN DOING? AND WHAT ARE WE DOING? THIS IS A QUICK BACKGROUND. WE'VE BEEN IN RENEWABLES FOR A LONG TIME GOING BACK TO THE 19 TWENTIES. WE WERE THE FIRST IN THE STATE TO BUILD A UTILITY SCALE SOLAR PROJECT. MR SCHRAMM AND HIS TEAM BACK IN 2019 EXECUTED THE ONLY ONE OF THE STATE'S FIRST LARGE PARTICIPATE OUR AGREEMENTS AND 100 MEGAWATTS OF SOLAR AND HARDENED COUNTY. THAT WAS PRIMARILY LINKED TO SERVING DOW IN A TOYOTA PLANT. AND 25% OF THAT OUTPUT WOULD COME TO ALL CUSTOMERS. MR TRUMP'S GONNA TALK IN MORE DETAIL A MINUTE ON THE STATUS THAT PLANT AND THAT PROJECT BECAUSE ILLUSTRATIVE OF THE CHALLENGES THAT SOLAR DEVELOPERS ARE FACING IN THE STATE WHEN IT COMES TO DEVELOPING SOLAR PROJECTS. UH, TWO YEARS LATER, WE SIGNED ANOTHER 125 MEGAWATT PROJECT AND BALLARD COUNTY AGAIN LINKED PRIMARILY TO LARGE CUSTOMERS. WE DO HAVE A COUPLE OTHER PROGRAMS . WE WORK THE ARCHDIOCESE LULA MAKER'S MARK, IT WAS SOMETHING CALLED BUSINESS SOLAR, WHICH PUTS PROJECTS AT THOSE PARTICULAR BOOKS. SITES UH WE ALSO HAVE A COMMUNITY SOLAR PROJECT, CALLED SOLAR SHARE IN THAT PROJECT ALLOWS CUSTOMERS TO SIGN UP AND BUY A SHARE OF SOLAR OUTPUT AT A SITE THAT'S ACTUALLY NEAR SIMPSONVILLE CREDITS THEIR BILLS. AND SO RIGHT NOW THAT SITE IS SET UP FOR ABOUT FOUR MEGAWATTS TOTAL. WE'VE ACTUALLY BUILT 2.5 MEGAWATTS, AND WE'RE TRYING TO SUBSCRIBE THE REST OF IT. WE DO HAVE NET METERING TARIFFS, WHICH ARE INVOLVED CUSTOMERS WHO PUT SOLAR ON THEIR PROPERTIES. WHICH IS SOMETHING THAT I THINK THE CITY WILL PROBABLY WANT TO LOOK AT SOME POINT. BUT RIGHT NOW WE HAVE ABOUT COMPANY WIDE ABOUT 4300 CUSTOMERS ABOUT 45 MEGAWATTS, ONE OF THE GROUPS THEY HAVE RESPONSIBLE FOR HIS SALES FORECASTING AND ANALYSIS, AND WE'RE FORECASTING BY 2030 THAT WILL GROW ALMOST TRIPLE TO ABOUT 11,800 CUSTOMERS AND ABOUT 100 MEGAWATTS BY 2030. WE ALSO HAVE CUSTOMERS THAT PURCHASE WE CALL RENEWABLE ENERGY, RENEWABLE ENERGY CERTIFICATES. WHICH IS IN THE RENEWABLE WORLD. THERE ARE STATES, FOR EXAMPLE, TO HAVE RENEWABLE PORTFOLIO STANDARDS THAT REQUIRES ELECTRICITY TO COME FROM RENEWABLES. IN ORDER TO MEET THAT PEOPLE CAN PURCHASE CERTIFICATES FROM OTHERS WEAKNESS CASE WE HAVE CUSTOMERS WHO PAY FOR US TO GO OUT AND BUY THEIR CERTIFICATES FOR THEM. WE ALSO BECAUSE KENTUCKY DOES NOT HAVE RENEWABLE PORTFOLIO STANDARD. WE UH FROM OUR BROWN SOLAR SITE, FOR EXAMPLE, WE SELL THOSE REX REX TO OTHER ENTITIES, PRIMARILY IN OHIO IS ONE PLACE THAT MONEY GOES BACK TO CUSTOMERS REDUCE THEIR COSTS SO UNTIL THE STATE CHANGES ITS MIND
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ABOUT RENEWABLE PORTFOLIO STANDARD OR OBLIGATION, REDUCED COSTS WILL PROBAB RESULT IN MANY OF THESE SOLAR PROJECTS, SELLING THOSE WRECKS TO OTHERS AND COME THE MONEY FLOWING BACK TO REDUCE CUSTOMERS' COSTS. WE HAVE SOME SMALL LOCAL QUALIFYING FACILITIES AT THE FEDERAL OBLIGATION TO PURCHASE POWER FROM SMALL UH, SOLAR AND OTHER RENEWABLE FACILITIES THAT AVOIDED COSTS. SO THE BIG NEWS I REALLY WANT TO TALK ABOUT IS WHAT'S PENDING AT THE PUBLIC SERVICE COMMISSION RIGHT NOW. WE HAVE A MAJOR FILING THAT INVOLVES RETIRING A LARGE FOUR COAL PLANTS AND ADDING A COUPLE OF GAS PLANTS. BUT FOCUS ON TALKING ABOUT HERE IS ALL THE RENEWABLES THAT WE'RE LOOKING AT ASKING FOR PERMISSION TO OWN BUILD, OWN AND OPERATE TO SOLAR PLANTS, ONE IN MARION COUNTY AND ONE IN MERCER COUNTY. AH MR SCHRAMM, HIS TEAM SIGNED UP FOR PURCHASE POWER AGREEMENTS. YOU CAN SEE THE NUMBERS THERE. AND THERE TARGET ONLINE DATES WERE ALSO ASKING PERMISSION FOR THE ABILITY TO BUILD STATES. FIRST LARGE SCALE LITHIUM ION BATTERY PROJECT. WE DO HAVE A VERY SMALL ONE MEGAWATT, TWO MEGAWATT HOUR. TEST PROJECT RIGHT NOW, BUT THIS WOULD MAKE IT, UH, THE STATE'S FIRST LARGE ONE, AND THAT'S GONNA BE IMPORTANT BECAUSE AS YOU MOVE UP THE RENEWABLES PERCENTAGE, I'LL TALK ABOUT THAT MORE THAN A MINUTE. YOU REACHED THE POINT WHERE I CAN'T USE THE POWER OR ACTUALLY HAVE TO HAVE THE STORE IT OR REJECT IT. SO THAT'S WHERE PLACES LIKE CALIFORNIA ARE TODAY, AND THAT'S WHY THEY'RE FOCUSED A LOT ON STORIES THERE. SO THIS IS OUR OPPORTUNITY. I THINK TO GET PREPARED FOR THAT FUTURE BY GETTING THAT BATTERY INSTALLED AND GETTING REAL OPERATIONAL EXPERIENCE WITH IT, SO MOVING FORWARD TO THE NEXT SLIDE IF THIS APPLICATION IS APPROVED BY THE PUBLIC SERVICE COMMISSION.IT WILL BE A SIGNIFICANT CHANGE IN THE COMPANY'S RESOURCE MIX AND WHERE THE ENERGY COMES FROM SMALL OVER CUSTOMERS. YOU CAN SEE IN 2021. WE'RE ABOUT 81% NATIONALLY, COLIN 18% GAS AND VERY LITTLE RENEWABLES. MAINLY ALL THESE DICKS HYDRO AND KENTUCKY UTILITIES PORTFOLIO IN OHIO FALLS HERE IN LOUISVILLE SO COLD WOULD DECREASE SIGNIFICANTLY. NATURAL GAS WOULD INCREASE, BUT RENEWABLES WOULD GROW BY A LOT AND PEOPLE MIGHT SAY, WELL, 9% RENEWABLES IS REALLY 8% OF THAT SOLAR DOESN'T SOUND LIKE A LOT. BUT PUT THAT IN CONTEXT. YEAH I BEGAN MY CAREER OUT IN UTILITIES IN ARIZONA AND ARIZONA IS ONE OF THE LARGEST PERCENTAGES OF SOLAR TODAY UTILITY SCALE AND THERE ARE ABOUT 6% UTILITY SCALE ENERGY TODAY, SO THIS WOULD BE A MAJOR STEP IN THE IN THE STATE MOVING FORWARD FROM A SOLAR PERSPECTIVE. TO THE POINT WE WOULD HAVE MORE SOLAR AS A SHARE OF TOTAL ENERGY THAN ARIZONA DOES TODAY. AND IF YOU'RE FAMILIAR WITH ARIZONA, THAT'S ONE OF THE BEST SOLAR RESOURCES IN THE WORLD IN TERMS OF NUMBER OF DAYS OF CLEAR SKIES AND SUNLIGHT AND MUCH EASIER GEOGRAPHY TO PUT SOLAR PLANTS ON , THAT'S A HUGE STEP FORWARD. THE OTHER BIG IMPACT FROM MACEIO TO PERSPECTIVE IS THE NEW GAS PLANTS WERE ASKING FOR PERMISSION. AMID 65% LESS SO TO THAN THE COAL PLANTS THEY'D BE REPLACING. SO THAT'S WHY YOU SEE IT IN THE MIDDLE BULLET THERE. THAT'S SO TOO WOULD DECLINE PRETTY DRAMATICALLY THAT 23% A LOT OF THAT WOULD BE IN JEFFERSON COUNTY TO THE PLANTS.
WE WANT TO RETIRE OR IYOUR IN JEFFERSON COUNTY. UH AND THE OTHER THING THAT DOES IS IT REALLY SETS US UP AND MAKES IT GOOD, IMPORTANT TRANSITION TO WHAT WILL HAPPEN IN THE COMING 20 THIRTIES, WHICH IS THE RETIREMENT OF THE PRETTY MUCH THE REST OF THE WHOLE FLEET AND REPLACE THEM WITH SOMETHING ELSE. AND SO IT LAYS THAT FOUNDATION FOR THAT. SO UH, JUST KIND OF BEFORE HE HANDED OFF HERE IN A MOMENT TO MR SCHRAMM TO TALK ABOUT THE DETAILS OF THE SOLAR PROJECTS AGAINST PUTS US IN THE U. S CONTEXT. THE LEFT COLUMN IS US DATA FROM 22. IN THE RIGHT COLUMN IS WHERE WE WILL BE IN 2030, ASSUMING ALL THISAKES PCE APPROVED AND EXECUT UPO, YOU' SEE NATUL G WILL BE VERY SIMILAR TOHES TOD WL SLL BEEV WILIL AE BIHIHAN THE NATION'S RY SIMILARPERATIONALLY. WEEAR, DON'T HAVE THE HYDRO AND A LOT OF HYDRO IS IN THE WESTERN PART OF THE UNITED STATES. WE DON'T HAVE THE OPPORTUNITY TO BUILD A HOOVER DAM OR SOMETHING LIKE THAT. WHEN KENTUCKY IS UNFORTUNATELY NOT BLESSED WITH GREAT WIND RESOURCES, AND WHEN WE'VE LOOKED AT WIND IN THE PAST, UH IN EITHER INDIANA OR ILLINOIS TRANSMISSION COSTS OF GETTING HERE MAKING MAKES IT NOT COMPETITIVE. SO WHAT YOU SEE THOSE SOLAR IS OUR CURRENT FOCUS AND WE WOULD BE WELL IN EXCESS WORTHY US AS A WHOLE IS TODAY WITH SOLAR I SAID CAPITAL WITH EVERYWHERE ARIZONA IS TODAY. SO IT'S A BIG TRANSFORMATION. SO THE CONCERN WE HAVE GOING FORWARD IS WE ARE WE CAN FOCUS ON SOLAR, FOR NOW IS SOLAR DOES LIKE HAVE LIMITATIONS, AND AS I SAID, BEFORE, YOU WANT TO PLAY THE TECHNOLOGY STRENGTH AFTER WEAKNESSES. THIS CHART SHOWS YOU THE GRAY AREAS THE CUSTOMER'S USAGE DURING THE DAYLIGHT HOURS AND THE BLUE AREAS CUSTOMERS USAGE AT THE NIGHTTIME HOURS OVER THE COURSE OF THE YEAR IS ROUGHLY 50 50 DAYTIME NIGHTTIME. AND SO I'M SURE YOU CAN PROMOTE UNDERSTANDING SOLAR DOESN'T WORK GREAT AT NIGHT. SO WHEN YOU LOOK AT SOLAR, WE HAVE A POINT WHERE WE WILL REACH DIMINISHING RETURNS AND COSTS WILL START TO ESCALATE. THAT PERCENTAGE IS ABOUT 20% SO WE'RE TALKING ABOUT BEING EIGHT OR NINE RIGHT NOW. SO THE NEXT STEP WE CAN GET TO
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PRETTY, YOU KNOW, I THINK COMPETITIVELY AND OPERATIONALLY MAKE IT WORK. BUT BEYOND THAT WE'RE GONNA SEE IS WE'RE STORY STARTS BECOMING AFFORDED, WHICH MEANS COSTS WILL POTENTIALLY GO UP OR YOU END UP REDUCING THE OUTPUT FROM PLANTS, WHICH IS WHAT CALIFORNIA DOES TODAY. IT'S ALSO DRIVES UP COSTS. SO THIS IS IMPORTANT. WHY DISTINCTION BETWEEN REAL TIME AND ANNUALLY IS IT'S ONE THING TO SAY. I WANT THIS MUCH ENERGY OF THE COURSE OF THE YEAR. AS SOON AS I START TRYING TO USE RENEWABLE SERVE LOAD AT A CERTAIN POINT IN TIME. COSTS CAN GO UP PRETTY DRAMATICALLY. OPERATIONAL CHALLENGES CAN OCCUR. SO WITH THAT, I'M GONNA TURN OVER REAL QUICK TO MR SCHRAMM. HE'S GOING TO TALK ABOUT SOME OF THE DETAILS OF WHAT'S GOING ON WITH SOME OUR SOLAR PROJECT, PARTICULARLY ONE IN HARDIN COUNTY RIGHT NOW, AND I'LL RETURN TO WRAP IT UP AND ENHANCE YOUR QUESTIONS. SO THANK YOU. THANK YOU AND JUST FOR THE PUBLIC OR COMMITTEE MEMBERS. THIS PRESENTATION IS ATTACHED TO ITEM NUMBER ONE ON OUR AGENDA.OKAY WHAT WE THOUGHT WE WOULD DO IS TALK A BIT ABOUT OUR FIRST SOLAR P P A. THAT WE EXECUTED WHICH WAS IN LATE 2019. SO AT THAT POINT IN TIME, THE DEVELOPER HELD LEASE OPTIONS ON MANY, MANY LAND PARCELS IN HARDIN COUNTY, AND THEY HAD COMPLETED PRELIMINARY DESIGN. SO THE PROJECTS ALREADY AT THAT POINT, FAIRLY WELL ADVANCED. AS WE KNOW EARLY 2020 COVID DELAYS BEGAN WITH MANY, MANY THINGS, INCLUDING PLANNING AND ZONING ACTIVITIES AND GOVERNMENT OPERATIONS, AND THAT AFFECTED THEIR APPROVAL EFFORTS AND HARDEN COUNTY SO THAT PERSISTED THROUGH MOST OF 2020. UM AND THEN THEY BEGAN TO HAVE ZONING AND CONDITIONAL USE PERMIT CHALLENGES DURING 2021. AH! I WOULD SAY SOLAR OPPOSITION BEGAN TO GALVANIZE AT THAT POINT, AND MANY PEOPLE DON'T WANT TO SEE FARMLAND USED FOR SOLAR. UM OTHERS ADJACENT. LANDOWNERS SAY THEY DON'T LIKE THE VIEW SHEDS, SO THERE'S AESTHETIC CONCERNS. UH THERE'S ALSO CONCERNS FROM THOSE WHO WANT TO USE THE LAND FOR OTHER DEVELOPMENT AND SEE OPPORTUNITIES LATER TO DO THAT.
SO THIS. THIS IS MR SINCLAIR SAID. THIS PROJECT WAS VERY ILLUSTRATIVE OF WHAT'S GOING ON IN SOLAR DEVELOPMENT TODAY. THESE ARE VERY LARGE PROJECTS. UM THE KENTUCKY, CITING BOARD AT THE STATE LEVEL APPROVED THE PROJECT IN MARCH. 2022 HOWEVER, THEIR APPROVAL IS, OF COURSE, CONTINGENT ON GETTING ALL OF THE LOCAL PERMITS AND APPROVALS THAT ARE NEEDED. CURRENTLY. SO THAT'S THAT'S BEEN NOW OVER A YEAR AGO . CURRENTLY THE PROJECT IS AWAITING REVISED HARDENED COUNTY GUIDELINES FOR PLANNING. MOST OF THAT WEIGHT HAS BEEN FOR MUCH OF 2023. UH THE PROJECT ITSELF.
THEY CANNOT FINANCE THE PROJECT UNTIL THEY HAVE THEIR FINAL APPROVALS. AH CONSTRUCTION AT THAT POINT WILL BE PROBABLY THE LEAST TIME INTENSIVE. IF ANY OF THIS PROCESS CONSTRUCTION WILL TAKE ABOUT A YEAR. SO CONTINGENT ON THOSE LOCAL APPROVALS. IF THEY ARE ACHIEVED, WE COULD SEE COMMERCIAL OPERATION OF THAT PROJECT IN 2025. IF WE IF WE LOOK AT THE NEXT SLIDE, 11 THING TO REMEMBER IN KENTUCKY IS MUCH DIFFERENT FROM WHAT MR SINCLAIR TALKED ABOUT. AND IN ARIZONA AND OTHER STATES IN THE WESTERN PART OF THE COUNTRY. TYPICALLY IN KENTUCKY, THERE ARE MANY, MANY LANDOWNERS. THE PARCELS ARE NOT THAT LARGE. SO WHAT YOU MAY SEE IN A PLACE LIKE TEXAS OR ARIZONA IS A LARGE, CONTIGUOUS BLOCK DEDICATED TO RENEWABLE PROJECTS SIMPLY BECAUSE LANDOWNERS CONTROL THAT UH, SIZE OF AREA. HERE IN KENTUCKY. YOU CAN SEE WHILE THIS IS ALL CONTIGUOUS FROM ONE SIDE TO THE OTHER. IT'S VERY PATCHY PATCHWORK IN TERMS OF THE LAND CONTROL OBLIGATIONS , SO WE JUST HAVE A LOT OF LANDOWNERS IN THE STATE. UM SO FOR 100 MEGAWATTS YOU'RE LOOKING AT APPROXIMATELY IN THIS CASE 900 ACRES. NOT ALL OF THAT IS SOLAR PANELS. SO YOU HAVE CERTAIN BUFFER ZONES AROUND IT. AND ALL OF THAT ALWAYS ANTICIPATED BECAUSE YOU BACK UP TO NEIGHBORS, YOU WANT TO HAVE THE APPROPRIATE BUFFER ZONES. SO GOING FORWARD. UH REGARDLESS OF THE COUNTY, EACH COUNTY HAS ITS OWN HAS ITS OWN OPPOSITION. TYPICALLY THAT POPS UP FOR THE SOLAR PROJECTS. BUT THIS IS VERY TYPICAL OF WHAT WE'RE SEEING IN MANY PARTS OF THE STATE. THIS IS HARDENED COUNTY, SO NOT FAR FROM LOUISVILLE, BUT WE SEE THIS OVER AND OVER AGAIN, AND ULTIMATELY WE HAVE BIG PLANS FOR SOLAR, BUT THE CHALLENGE WILL BE ACTUALLY DEVELOPING AND CONSTRUCTING THE PROJECTS. TURN IT BACK OVER TO MR SINCLAIR. THANK YOU. THIS IS OUR LAST SLIDE JUST TO WRAP THIS UP AND THEN HOPEFULLY ANSWER ANY QUESTIONS THAT YOU HAVE. SO WHEN WE LOOK AT THE METRO COUNCIL RESOLUTION, AND WE LOOK AT WHAT WE'RE DOING, ON OUR SIDE. WE SEE KIND OF A MULTI STEP PROCESS.
AND ONE THING JUST TO AMPLIFY WHAT MR TRAM JUST INDICATED. WHAT WE SEE IN THESE LOCAL
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COUNTY, CITING AND AREAS IS THAT LIKE ANYTHING ELSE THAT COMES TO LAND DEVELOPMENT. OPPOSING FOLKS COME OUT AND DROVES AND SUPPORTERS ARE NOWHERE TO BE FOUND. AND SO I DON'T KNOW THE PROCESS BY WHICH LOCAL GOVERNMENTS WORK TOGETHER. BUT I THINK TO THE EXTENT THAT IT WOULD BE HELPFUL IF METRO COUNCIL COULD HELP SUPPORT SOME OF THESE PROJECTS IN SOME WAY, SHAPE OR FORM IN OTHER IN OTHER AREAS OF THE STATE. BECAUSE THEY ARE VERY LANDED SENSITIVE AND FOR US TO MOVE FORWARD. WE'RE GOING TO NEED THE THOSE KIND OF THOSE KIND OF ACTIVITIES AND SUPPORT. ON KIND OF ALSO YOUR SIDE OF THE MEAT OF THE CITY SIDE OF THE METER. I THINK EVALUATING YOU KNOW HOW WE'RE HOW THEY'RE GOING TO CONVERT FROM NATURAL GAS. ELECTRICITY WILL BE IMPORTANT MENTIONED ROOFTOP SOLAR. WE'RE NOT IN THE ROOFTOP SOLAR BUSINESS, SO I'M SURE LOTS OF FOLKS THAT ARE YOU KNOW, WE DO WORK WITH THOSE INSTALLERS TO MAKE SURE THE PROJECTS CONNECTED TO OUR GRID PROPERLY AND THE METERING STUNT PROPERLY. AND THE OTHER THING THAT WE WANT TO STRESS TO ENERGY EFFICIENCY IS ALWAYS IMPORTANT. IF YOU CAN MAKE BUILDINGS MORE EFFICIENT, YOU NEED LESS ENERGY GENERALLY. TWO THEREFORE, MEET THE GOALS THAT YOU'RE INTERESTED IN. ON OUR SIDE. UH YOU KNOW, I MENTIONED BEFORE THAT WERE INVOLVED WITH MANY CUSTOMERS AND PROCURING REX ON THEIR BEHALF. WE'RE HAPPY TO WORK WITH THE CITY TO DO SOMETHING LIKE THAT, UM WE'D BE HAPPY TO WORK WITH THE CITY IF THEY HAVE A SITE THAT WOULD FIT OUR BUSINESS SOLAR PROJECT MODEL WHERE AGAIN THAT'S RELATIVELY SMALL BUT BIGGER THAN REAL TOP TYPICALLY YEAH. AND WE'RE YOU KNOW, WE WORKED TO DEVELOP THE SITE. UH WELL ON THE PROJECT CHARGE OF LEASE PAYMENT BASICALLY FOR THE PROJECT. THE OTHER CONCEPT THAT YOU KNOW WE WANT TO TALK ABOUT, PERHAPS AS A DEDICATED SOLAR SHARE PROJECT WHERE COMMUNITY SOLAR, SO YOU KNOW IS THERE A SITE EITHER? AN EXISTING BROWNFIELD SITE OF THE CITY HAS THEY DON'T SEE DEVELOPMENT OPPORTUNITIES FOR, UH, PERHAPS A SITE THE COMPANY MIGHT HAVE WHERE WE COULD PUT TOGETHER A PROJECT, WHICH WORKS LIKE SOLAR SHARE, WHERE THE COST OF THE PROJECT IS PAID FOR BY THE CITY, BUT THE CREDIT AGAINST THE ENERGY BILLS OF THE CITY ONE THING THAT I WANT TO MAKE SURE THEY UNDERSTAND, THOUGH, IS THAT AND THIS IS WHY THE FOCUS ON LARGE SCALE SOLAR IS SO IMPORTANT FROM A COST EFFECTIVE BACK TO THAT. OR OBLIGATIONS SERVING LESS REASONABLE COST. IS THAT EVEN AFTER THE INFLATION REDUCTION X SUBSIDIES, THE COST OF SMALL SCALE SOLAR SIGNIFICANTLY HIGHER THAN LARGE SCALE AND SO THIS IS FROM A COMPANY CALLED BAZAAR, WHETHER OTHER FOLKS OUT THERE THE ESTIMATE COSTS OF PROJECTS, BUT WE'LL SEE THERE'S RESIDENTIAL ROOFTOP SOLAR IS OFTEN YOU KNOW , 43 TO 4 TIMES MORE EXPENSIVE FOR MEGAWATT HOUR THAN UTILITY SCALES WITH PROJECT MR SCHRAMM TALKS ABOUT UTILITY SCALE. THAT'S REALLY DUE TO A COUPLE OF THINGS. ONE IS THE ABILITY TO OPTIMALLY SITE. THE PANELS. ROOFTOPS ARE NOT DESIGNED TO NECESSARILY FOR OPTIMAL SOLAR RADIANCE CAPTURE. THEY'RE DESIGNED TO KEEP THE RAIN AND EVERYTHING OUT OF THE HOUSE OR THE BUILDING. THE OTHER THING THAT GOES ON TO IS JUST A LOT OF ACADEMIES OF SCALE INSTALLATION, AND MR FRANK TALKED ABOUT ABOUT A YEAR FOR CONSTRUCTION. YES A LOT OF PANELS BEING PUT IN THE YEAR. THESE GUYS ARE VERY EFFICIENT AT PUTTING THOSE PROJECTS IN AND ONCE THEY GET GOING ON CONSTRUCTION SO JUST BE MINDFUL OF THE COST SITUATION.AND THE LAST YEAR'S WRAPPING IT UP. I KNOW WE'VE GOT SOME OTHER FOLKS THAT WORK WITH THE CITY ON REGULAR BASIS ON ENERGY ISSUES, AND YOU KNOW WE'RE STAYING, READY, WILLING AND ABLE TO CONTINUE WORKING ON THOSE THINGS WITH THAT ALL BE QUIET AND HOPEFULLY ANSWERING QUESTIONS.
THANK YOU SO MUCH AGAIN FOR MEMBERS OF THE PUBLIC AND FOR THE COMMITTEE. THIS PRESENTATION IS ATTACHED TO THE AGENDA. PASS THE MIC TO COMMITTEE MEMBER RUI . WE DO HAVE VICE CHAIR MARYLAND PARKER IN THE QUEUE, SO JUST KEEP IN MIND, MAYBE ASK A FEW OF THESE QUESTIONS AND THEN JUMP BACK TO THE QUEUE. OKAY. THANK YOU VERY MUCH. YES, I'LL ASK TWO OR THREE QUESTIONS, AND THEN I'LL PASS IT ON TO ANYBODY ELSE THAT HAS ANY MORE COME BACK AND FORTH. SO THE FIRST QUESTION I'VE GOT IS THAT THANK YOU FOR YOUR PRESENTATIONS. VERY DETAILED. DO YOU HAVE A PARTICULAR PERSON WHO'S ASSIGNED TO OVER TO THAT WE COULD TALK TO AS FAR AS HOW YOU'RE PROGRESSING TOWARDS A CLEAN ENERGY GOALS. WHEN YOU SAY HOW WE ARE PROGRESSING, YOU MEAN A COMPANY AS A WHOLE? JUST IN GENERAL, IS THERE A POINT PERSON THAT WE CAN TALK TO? SO IF WE'VE GOT A QUESTION ABOUT HOW THINGS ARE DEVELOPING, IS THERE SOMEONE THAT WE COULD USE AS A POINT OF CONTACT? UM I WOULD HAVE TO KNOW THERE'S PROBABLY A ACCOUNT REPRESENTATIVE FOR THE CITY. YOU GET ONE OF MY RESPONSIBILITIES IS GENERATION PLANNING, SO THAT CERTAIN SOME HAPPY ANSWER QUESTIONS ABOUT HOW THE PORTFOLIO AS A WHOLE IS EVOLVING. UM BUT IF IT'S SOMETHING SPECIFIC THAT THE CITY UH, NEEDS TO TALK TO YOU, I'D HAVE TO CHECK WITH OUR ACCOUNT REPRESENTATIVES TO SEE WHO THAT CONTACT PERSON IS, BUT WE CAN GET BACK TO YOU ON THAT. OKAY THANK YOU VERY MUCH. OKAY MY NEXT QUESTION REGARDS SOLAR SHARE AND I'M GOING TO READ WHAT I PULLED UP WHEN I LOOKED AT SOLAR SHARE BECAUSE OF THE MONTHLY SUBSCRIBER TO SOLAR
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SHARE PROGRAM. YOUR MONTHLY BILL MAY BE HIGHER BECAUSE YOU'LL BE CHARGED FOR THE SOLAR CAPACITY BASED ON YOUR SUBSCRIPTION, IN ADDITION TO CHARGES FOR YOUR ELECTRIC AND NATURAL GAS USAGE DURING THE ACTUAL BUILDING DATES AND ADDITIONAL CHARGES THAT ARE ITEMIZED EACH MONTH FOR YOUR REVIEW. NOW. BACK IN THE DAY ABOUT 2010. LET'S SAY I WAS PURCHASING GREEN ENERGY, AND I KNOW THAT THE MONEY THAT I WAS PETTING AND THEN WAS THAT WAS TOLD VERY DIRECTLY. THIS WAS GOING TO REFER THIS A HYDRO PLANT. UH DOWN THERE SHAKER TOWN ON THE RIVER. THEY WERE VERY CLEAR ABOUT WHERE THAT MONEY WAS SUPPOSED TO BE SPENT. WHERE IS MY SOLAR SHARE? MONEY GOING NOW? WHERE IS THIS EXTRA FEE GOING? RIGHT SO THERE'S A MISSION IN THE PRESENTATION. THERE'S A SITE OFF THE I 64 NEAR SIMPSONVILLE. IF YOU'RE GOING TOWARD LEXINGTON , IT WOULD BE ON YOUR LEFTIST NORTH SIDE OF THE HIGHWAY. JUST BEFORE YOU GET TO THE SIMPSONVILLE EXIT. UM THERE'S A SAID IT'S A FOUR MINUTES LATER DESIGNED FOR FOUR MEGAWATTS IS CURRENTLY HAS 2.5 MILLION WATTS ON IT. SO YOU CAN SEE THAT IN FACT, YOU CAN GO ON OUR WEBSITE. WE HAVE SOME SHEEP OUT THERE.THEY KEEP THE GRASS TRIMMED AND THERE'S CAMERAS SO YOU CAN WATCH THE SHEEP. SO THAT'S EXACTLY WHERE THAT PROJECT IS. OKAY SO ULTIMATELY, UM, SOLAR WINDS UP BEING CHEAPER. YOU SHOULD. THIS SHOULD BE A GOOD FINANCIAL INVESTMENT. YOU SHOULDN'T NEED EXTRA MONEY FROM THE RATEPAYERS TO DO THIS. WELL AGAIN THE WAY THAT THE WAY THINGS WORK AT THE PLANT COSTS MONEY TO BUILD, IT WOULDN'T OTHERWISE BE BUILT, EXCEPT FOR THE PEOPLE WHO SUBSCRIBE TO IT. SO THE PEOPLE WHO SUBSCRIBE TO ARE THE PEOPLE THAT ARE PAYING FOR THE COST OF THE PROJECT, AND HE RECEIVED THE ENERGY FROM THE PROJECT, SO IT'S DEDICATED. THAT THEY PAY FOR THE PROJECT TO BE DEDICATED TO THEM.
I'M SORRY. I STILL HAVE ISSUES WITH HAVING TO PAY EXTRA FOR ELECTRICITY AT ONCE OF COSTING LESS. BUT WE'LL LET THAT I DON'T WANNA BE ARGUMENTATIVE. I WISH I GO BACK TO THE SLIDE THAT IS ON THE SCREEN RIGHT NOW. YOU KNOW, THE AVERAGE RESIDENTIAL RATE. AH IT WAS PROBABLY THE NEIGHBORHOOD 10, PLUS CENTS ON AN ENERGY BASIS. AH BUILDING SMALL PROJECTS AND ACTUALLY, THE COST OF SOLAR SHARES A LITTLE BIT HIGHER THAN THIS NIGHT SENSE BECAUSE THIS IS A LEVEL IZED NUMBER. AND SO THE WAY PROJECTS WORK IS THEY'RE KIND OF EXPENSIVE TO BEGIN WITH, AS A PROJECT IS PAID OFF, PAYING OFF ALONE. THE COST DECLINES THROUGH TIME, SO THE RATES ARE REGULATED BY THE PUBLIC SERVICE COMMISSION , SO THEY'VE REVIEWED THE COST OF THE PROJECT AND THE RATES BEING CHARGED, SO THEY ARE BASED ON THE COST OF THE PROJECT. OKAY. THANK YOU. NOW YOU SAY THAT YOU NEED TO CONTINUE INVESTING IN FOSSIL FUEL POWER TO MEET PEAK LOAD. SO HAVE YOU CONSIDERED IMPLEMENTING TIME OF USE PRICING TO HELP DISPERSE ENERGY USE THROUGHOUT THE DAY? I KNOW I LOOK AT MY DISHWASHER AND GO DO I NEED TO REALLY START THE DISHES RIGHT NOW, OR CAN I JUST LET THAT RUN OVERNIGHT WHEN THERE'S NOT A WHOLE LOT OF STUFF GOING ON? RIGHT, SO WE ACTUALLY HAVE A RESIDENTIAL TIME OF DAY RATE THAT CUSTOMERS ARE FREE TO SIGN UP FOR. UH, A LOT OF PEOPLE HERE. HAVE NOT CHOSEN TIME OF DAY RACE. WE DON'T HAVE A LOT OF ADOPTION OF THAT IN KENTUCKY. UH YOU KNOW, I WAS IN ARIZONA IS A VERY POPULAR RATE, BECAUSE WHAT YOU NEED TO MAKE THAT REALLY WORK TYPICALLY IS YOU HAVE TO HAVE A LARGE ENERGY USAGE THAT IS EASILY SHIFTED. AND SO YOU KNOW, OUT THERE YOU HAVE A HIGH INSTANCE OF SWIMMING POOLS AND SWIMMING POOL PUMPS ARE LARGE ENERGY USERS, SO IT'S PRETTY EASY TO PUT THOSE ON OFF PEAK PERIOD. AH, IN IN LOUISVILLE, YOU KNOW, THE BIGGEST USAGE IN THE RESIDENTIAL HOUSE IS LIKELY GOING TO BE YOUR AIR CONDITIONER. UH AND YOUR IF YOU HAVE ELECTRIC HEAT YOUR HEAT PUMP BURGER ELECTRIC FURNACE, SO THOSE ARE A LITTLE BIT HARDER TO SHIFT. AND SO THAT'S WHY I THINK GENERALLY YOU DON'T SEE IT. WE HAVE SOME CUSTOMERS THAT ARE ON THAT HAVE ELECTRIC VEHICLES HAVE TAKEN ADVANTAGE OF THAT THEY LIKE THEY WOULD CHARGE OFF PEAK REALLY GOOD DISCOUNT FOR COMPARED TO THE ANTIQUE PERIOD, BUT WE DO HAVE THE OPTION AVAILABLE FOR CUSTOMERS, RESIDENTIAL CUSTOMERS AND ALL OUR INDUSTRIAL CUSTOMERS. HIGHER ONES ARE ALL ON TIME OF DAY RATES. SO THEY PAY THIS ON THE PEAK DEMAND AND THEN THEIR ENERGY IS BASED ON TIME OF DAY AS WELL. I WOULD LIKE TO KNOW WHERE TO FIND THAT I HAVE AN ELECTRIC VEHICLE. I HAD NO IDEA YOU WILL HAVE A TIME OF DAY RATE. SO UH, AGAIN, I CAN GET YOU THE SPECIFICS, UH, DIRECTLY BUT EMAIL US AFTER WE'RE DONE HERE, BUT UH, ON OUR COMPANY'S WEBSITE. THERE'S A SECTION SHOWS ALL OF OUR RATES. AND TARIFFS.
AND SO IN THERE, THERE WILL BE A RESIDENTIAL TIME OF DAY, RIGHT? FILING OKAY, I THINK IT WOULD BE USEFUL TO PUBLICIZE THAT YOU GET A LOT MORE OUT OF THE PEOPLE KNEW IT EXISTED. SO THANK YOU VERY MUCH, UM, GERMANY WANT TO GO TO THE NEXT ONE? YEAH JUST A QUICK QUESTION, AND THEN WE COULD JUMP TO VICE CHAIR. IF THAT'S OKAY, SO A LOT OF PEOPLE ARE STRUGGLING FINANCIALLY IN OUR CITY. YOU ALL HAVE ASSISTANCE PROGRAMS. YOU HAVE PARTNERS THAT HAVE ASSISTANCE PROGRAMS. COULD YOU TALK TO ME ABOUT WHAT PERCENTAGE OF THOSE PROGRAMS ARE IN HOUSE VERSUS EXTERNAL PARTNERS THAT ARE SIMPLY JUST HELPING PAY PEOPLE'S BILLS? YEAH. I AM NOT.
UNFORTUNATELY THE BEST PERSON TO ASK ABOUT THOSE THINGS, SO I'D HAVE TO GET BACK TO YOU WITH
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SOME INFORMATION ABOUT THAT, LIKE SOME ON THE GENERATION SIDE OF BUSINESS, NOT THE BECAUSE, UM, ER SERVICE SIDE, BUT YOU'RE RIGHT. WE DO HAVE A VARIETY OF DIFFERENT PROGRAMS. AND UH, BUT WE CAN GET THAT INFORMATION TO YOU. HAPPY TO DO THAT. AND I DON'T KNOW IF YOU CAN ANSWER THIS OR YOU WOULD NEED TO PASS THIS ON AS WELL. I'M CURIOUS AS RATES INCREASE DO THE IN HOUSE ASSISTANCE PROGRAMS EXPAND OR THEY THE SAME. WELL, FIRST OF ALL, WE HAVEN'T HAD ANY BASE RATE INCREASES FOR SEVERAL YEARS , AND THE PLAN IS NOT TO HAVE ANY FOR SEVERAL MORE YEARS.SOMETHING IS CHANGING THE RATES WOULD BE BASICALLY FUEL, WHICH RIGHT NOW, FORTUNATELY, NATURAL GAS PRICES HAVE COME DOWN SOLUTION BECOMING DOWN. I WOULD AGAIN HAVE TO LOOK AT THE PROGRAM DESIGNS AND WE HAVE TO GET BACK TO YOU ON HOW THOSE ARE EXPAND AND CONTRACT AND SOME OF THAT IS BASED ON FEDERAL FUNDING AND OTHER THINGS, WHICH IS OUTSIDE THE CONTROL. BUT WE CAN GET YOU CAN GET YOU ALL THE DETAILS ON THAT UNDERSTOOD AND JUST TO CLARIFY WHEN I SAY RATES TALKING ABOUT PEOPLE'S BILLS GOING UP, SO YEAH, UNFORTUNATELY, BIGGEST DRIVER ON BILLS IS USUALLY WEATHER. AND THE GOOD NEWS, I GUESS FROM RELATIVE MILD SUMMERS, HOPEFULLY SOME RELIEF FOR CUSTOMERS IN THAT REGARD. SO OKAY. VICE CHAIR PARKER. YES THANK YOU. THANK YOU FOR YOUR PRESENTATION. UM, I WAS JUST CURIOUS. YOU SAID THERE'S 900 ACRES OF SOLAR, SO THERE WILL BE A 900 ACRE SELLER FORM. HOW MANY HOMES COULD YOU ROUGHLY ESTIMATE THAT THAT WOULD PROVIDE ENERGY. FOR I HAVE TO DO SOME QUICK MATH. CHECK YOUR CALCULATOR WITH YOU AND AGAIN RECOGNIZED WHEN THEY DO THE MATH THAT'S TAKING COMMON AVERAGE. USE PER CUSTOMER, AND IT'S NOT JUST LOOKING AT AROUND THE CLOCK AND OBVIOUSLY THE SOLAR PLANTS DON'T PRODUCING POWER AT NIGHT, SO GIVE UP. GIVE HIM ONE MINUTE AND WE'LL COME BACK TO YOU. EXACTLY ESTIMATE. OKAY SO IN IN SOME OF MY READING THAT I'VE DONE SOLAR, UM, FARMS IF YOU WANT TO CALL THIS AREA POTENTIALLY THAT THEY ACTUALLY CREATE A GREENHOUSE EFFECT THEMSELVES. DO YOU HAVE ANY.
KNOWLEDGE ON THAT WELL, AND DOES THAT OFFSET THE BENEFIT, RIGHT? SO I THINK WHAT YOU'RE PROBABLY REFERRING TO IS RATHER THAN GREENHOUSE IS PROBABLY A MORE OF A HEAT ISLAND IMPACT BECAUSE YOU HAVE THE GLASS IN THE DARK. THAT WOULD CAUSE THAT AREA TO BE PERHAPS WARMER THAN OTHERWISE WOULD BE. UH OFF THE TOP OF MY HEAD. I DON'T HAVE ANY A LOT OF DATA ON THAT. BUT ONE THING THAT WHEN WE TALK TO DEVELOPERS, AND ONE THING THAT'S VERY MUCH THE INDUSTRY IS FOCUSED ON IS FITTING IN WITH THE LOCAL AREA. AND SO I MENTIONED BEFORE YOU KNOW THE SHEEP THAT WE HAVE AT BOTH OUR SOLAR SHARES, CITING ARE BROWN SITE. AND THERE'S A AGRICOLA GRAVEL TAKES. WHAT DO THEY CALL ME A TRUCK? IS THAT RIGHT? YEAH SO THE IDEA IS THAT YOU KNOW, WE WE'VE GOT YOU KNOW YOU HAVE AGRICULTURAL TYPE OF ACTIVITIES GOING ON AT THE BESIDES THE SOLAR PROJECT ITSELF, SO YOU HAVE TYPICALLY SHEEP. YOU HAVE POLLINATOR PLANTS. WE'VE DONE A LOT OF WORK IN THAT AREA, SO THOSE ARE THE KIND OF THINGS THAT WOULD MITIGATE AGAINST WHAT YOU JUST TALKED ABOUT. KIND OF THE HEAT ISLAND IMPLICATION AGAIN RECOGNIZED. THESE ARE STILL PRETTY RURAL AREAS, SO I WOULD EXCESSIVE HATE. THAT WOULD BE LESS THAN YOU WOULD SEE IN THE MORE URBAN TYPE OF ENVIRONMENT. OKAY AND THEN ONE LAST COMMENTS . LET'S QUESTION YOU KNOW, WE TALKED ABOUT MHM FINANCIAL ASSISTANCE FOR FOLKS AS ENERGY COSTS GO UP, AND A LOT OF THESE TYPE ENERGY. UM. AVENUES ARE MORE EXPENSIVE. SO WE IF WE DON'T DO SOMETHING ABOUT OUR STATE OF RECESSION AND HYPER INFLATION RIGHT NOW, AND PART OF THE REASON WE'RE IN. THAT IS BECAUSE OF UM YOU KNOW, GAS SUPPLIES BEING SHUT OFF. AND EVERYTHING COSTS MORE BECAUSE IT COSTS MORE TO TRANSPORT EVERYTHING. UM SO. DO YOU FEEL THAT? THE ENERGY SAVINGS WITH THIS WOULD OFFSET THE INCREASED COSTS. AND IF SO, HO MANY YEARS OR DECADES. WOULD THAT TAKE OKAY. I'M GONNA TRY TO. ANSWER YOUR QUESTION AS BEST I UNDERSTAND IT SO WE'RE TALKING ABOUT THE SOLAR PROJECTS THAT WERE TALKING ABOUT HERE. THOSE WERE JUSTIFIED BECAUSE BASED ON OUR RESOURCE PLANNING ACTIVITIES , THEY WERE LOWER COSTS AND OTHER ALTERNATIVES. SO WE HAVE LOTS OF COMPLICATED MODELS THAT WE LOOK AT DIFFERENT TECHNOLOGIES AND HOW THEY PERFORM. AND SO WHEN WE LOOK AT THE PRICING THAT WE RECEIVED FROM THESE ARE SPONSOR RFP ON THESE FROM HIS DEVELOPERS, AND WE LOOKED AT OVER THE 20 TO 30 YEAR LIFE OF THESE PARTICULAR
[01:15:05]
AGREEMENTS. AH WE THINK THAT THAT'S GOING TO BE COST EFFECTIVE FOR CUSTOMERS. UM SO IN THAT REGARD, I WOULD SAY WE'RE NOT INCREASING COSTS WERE ACTUALLY MANAGING COSTS. AND FURTHERMORE, IN THESE CASES BECAUSE WE'RE LACKING IN AS A FIXED NUMBER OVER THE LIFE OF THE PURCHASE POWER AGREEMENT, BUT ALSO ACTS AS A HEDGE AGAINST SOME OF THE THINGS YOU MENTIONED, WHICH IS SAY, YOU KNOW, A YEAR AND A HALF AGO, WE'RE STANDING HERE WILL BE TALKING ABOUT VERY HIGH FINANCIAL GAS PRICES RIGHT NOW. THOSE ARE NOW COME DOWN IN THE LAST YEAR, BUT MANAGING THAT THE VOLATILITY THAT YOU SEE IN THOSE TYPE OF COMMODITY PRICES THAT WOULD ACTUALLY REDUCE SOME OF THE BILL ISSUES THAT THE CHAIRMAN WAS MENTIONING EARLIER BY BRINGING MORE STABILITY TO THAT PART OF THE PORTFOLIO. SO THOSE ARE THE THINK THE BENEFITS WERE SAYING THE OTHER THING I WOULD SAY TWO AND WE TALKED ABOUT THIS IN THE FILING OF THE PUBLIC SERVICE COMMISSION IS TO THE EXTENT THE COUNTRY MOVES TO, UH, C 02 TYPE REGULATIONS.OBVIOUSLY, THE SOLAR PROJECTS WILL NOT ADMIT ANY C 02 SO THAT WOULD ALSO MITIGATE THE RISK ASSOCIATED WITH THE REST OF THE PORTFOLIO AND ADDRESSING FUTURE CEO TO REGULATIONS. SO I THINK WHEN YOU LOOK AT THE PORTFOLIO WE'VE PROPOSED AND THIS IS SOMETHING THAT'S IN THE CASES THAT WE STRESS IT OVERALL. WHAT BROAD RANGE OF POSSIBLE FUTURES BECAUSE WE'RE EXACTLY CONCERNED . WHAT YOU JUST SAID IS. WE'RE VERY MUCH AWARE IT GOES BACK TO OUR PURPOSE OF KEEPING COSTS AS LOW AS WE CAN BE IT PROVIDING RELIABLE ELECTRICITY SERVICE, SO HOPEFULLY I COVERED YOUR QUESTION. HMM A LITTLE BIT, AND I KNOW IT'S HARD TO ANSWER BECAUSE WE DON'T HAVE A CRYSTAL BALL EITHER. UM AND YOU KNOW THAT OTHER THINGS CAN ALWAYS TURN THINGS SIDEWAYS. DID YOU GET AN ANSWER YET? ON THE 900 ACRES AND A 100 MEGAWATT SOLAR PROJECT COVERING THAT 900 ACRES WOULD PRODUCE IN A YEAR? THE AMOUNT OF ENERGY EQUIVALENT TO WHAT ABOUT 18,000 HOMES MIGHT USE IN A YEAR. I JUST EMPHASIZE IT'S NOT GOING TO PRODUCE IT AT THE RIGHT TIMES, BUT EQUIVALENCY OVER A YEAR IT WOULD BE ABOUT 18,000 HOMES. OKAY? SO ROUGHLY. THAT MIGHT BE. LIKE 10% JUST GUESSING OFF THE TOP OF MY HEAD OF THE ENTERED ENERGY NEEDS OF LOUISVILLE. BASED ON OUR POPULATION. UH BAD. YEAH, I GUESS I GO BACK TO YOU KNOW WHAT WE SAID. AS A WHOLE. THE SOLAR IS A PART OF THE OVERALL G AND K PORTFOLIO COMBINED WOULD BE ABOUT 8% OF TOTAL ENERGY WOULD BE COMING FROM SOLAR PROJECTS. YEAH, AND I JUST POINT OUT LOUISVILLE HAS A LOT MORE. GAS HEAT. THEN OUR CONTACT UTILITY SERVICE AREA. SO YOU KNOW, MIGHT PRODUCE A LITTLE BIT MORE HIGHER PERCENTAGE FOR THEM. BECAUSE OBVIOUSLY, THE SOLAR PROJECTS WORK THE BEST IN THE SUMMERTIME.
AS I SAID BEFORE MY CHART THAT'S WHEN ELECTRICITY USAGE FOR OUR LIKE THIS PLACE IS GOING TO BE HIGHER FOR A DUAL ENERGY CUSTOMER BECAUSE THEY AREN'T USING OBVIOUSLY MUCH GAS AT THAT POINT IN TIME. OKAY? THANK YOU. THANK YOU SO MUCH. I HAVE A QUESTION. I'M CURIOUS ABOUT. YOU MENTIONED A LOT OF PEOPLE HERE OWNING LAND AND IT BEING PROBLEMATIC AND DELAYING DEVELOPMENTS. WE PASSED A RESOLUTION IN THE SPRING AROUND YOU ALL SEIZING LAND FOR A NATURAL GAS PIPELINE. JUST CURIOUS WHEN YOU DECIDE TO USE EMINENT DOMAIN BECAUSE YOU USED IT FOR THAT. WHY NOT USE IT FOR SOME OF THE SOLAR PROJECTS AS WELL? WELL UM, FIRST OF ALL, ONLY L G AND K. YOU HAVE AN EMINENT DOMAIN AND THE PROJECTS THAT MR SCHRAMM DESCRIBED OR NOT. WE DON'T OWN THOSE PROJECTS . THEY'RE OWNED BY A THIRD PARTY, AND THEY ARE SELLING HIS POWER FROM THOSE PROJECTS. SO THOSE THOSE PARTIES DON'T HAVE THAT. AUTHORITY. THE OTHER THING , TOO, IS YOU KNOW EMINENT DOMAIN ITSELF CAN BE A LENGTHY PROCESS AS WELL. BUT THERE IS ADULT. YOU'RE RIGHT. THERE'S A SUBSTANTIVE DIFFERENCE THERE. UH AND AGAIN THAT WAS DISCUSSED WITH THE PUBLIC SERVICE COMMISSIONS RELATES TO THE TWO PROJECTS THAT RISKING TO BUILD OUR OWN OURSELVES. AH THAT'S ONE THING THAT WE SAW AS ADVANTAGE VERSUS THE PURCHASE POWER AGREEMENTS AS WE THINK WE WON'T RUN INTO THE SIMILAR KIND OF PERMITTING CHALLENGES THAT PERHAPS OTHERS ARE RUNNING INTO. COMMITTEE MEMBER, ROY. THANK YOU VERY MUCH. LIKE TO EMPHASIZE THAT NON RENEWABLE RESOURCES ARE ONLY GOING TO GET MORE EXPENSIVE OVER TIME, WHEREAS A RENEWABLE RESOURCE ONCE YOU BUILD THE INFRASTRUCTURE, THE PRICE IS GOING TO BE RELATIVELY STABLE
[01:20:04]
AND THE SOURCES OF GENERATION OR CHIMNEY BECOME CHEAPER OVER TIME . SO IF THAT'S THAT IS THE CASE AND YOUR REPORTING SAYS YOU CAN INTEGRATE 40% RENEWABLES INTO THE POWER GRID WITHOUT EVEN HAVING TO WORRY ABOUT LOAD RELIABILITY. WHY ARE YOU ASKING TO BUILD TWO NEW GAS FIRED POWER PLANTS? THE. 40% NOT SURE I FOLLOW THAT NUMBER, BUT THE AGAIN I GO BACK TO THE PROCESS WE WENT THROUGH TO PREPARE THE FILING WITH THE PUBLIC SERVICE COMMISSION. WE HAVE VERY SOPHISTICATED MODELS THAT LOOK AT ALL THE DIFFERENT TECHNOLOGIES AND HOW THEY PERFORM. WE LOOK AT THE SYSTEM HOUR BY HOUR. AND THE FOR EXAMPLE, THE FOUR COAL UNITS THAT RETIRING ROUGHLY HALF THEIR ENERGY PROVIDES, AS PROVIDES LOAD AT NIGHT. AND SO AH, YOU KNOW, SERVING POWER AROUND THE CLOCK AND ALL WEATHER CONDITIONS IS A CHALLENGE FOR SOME TECHNOLOGIES. AND SO THAT'S WHY I COME BACK TO US HOW THEY PUT THE PORTFOLIO TOGETHER. IT'S NOT A ONE SIZE FITS ALL CHOICE. AND SO THE PROCESS WE GO THROUGH IS TO TEST THESE DIFFERENT TECHNOLOGIES. UNDER DIFFERENT FUEL SCENARIOS. DIFFERENT SCENARIOS DIFFERENT LOAD SCENARIOS DIFFERENT, YOU KNOW, CASES AND DETERMINE WHAT'S THE BEST CALL THE MOST ROBUST PORTFOLIO TO ADDRESS THE CURRENT SITUATION. YOU'RE CORRECT. AND WE SAY THAT IN THE IN THE FILING THAT WE STILL IF THIS IS ALL APPROVED, WE STILL HAVE 3200 MEGAWATTS OF COAL PLANTS ARE GOING TO HAVE TO BE ADDRESSED IN THE COMING DECADE. AND SO THAT WILL BE ADDRESSED BASED ON THE TECHNOLOGY CHOICES AND COSTS AT THAT MOMENT IN TIME. THANK YOU VERY MUCH. UM I REALIZED WE ARE RUNNING OUT OF TIME HERE IS THAT CORRECT? YES OKAY, SO I'M GOING TO ASK A QUESTION THAT WAS POSED BY SOME STUDENTS THAT YOU HAVE HELPED. SO UM WOULD LG AND HE EVER CONSIDER USING NUCLEAR ENERGY IN KENTUCKY THAT WAS LEGAL. WELL FIRST OF ALL, MY UNDERSTANDING IS THE LAW HAS CHANGED ON THAT. BUT IT IS, IN FACT LEGAL. IN FACT, THERE'S A COMMITTEE OR TASK FORCE WORKING RIGHT NOW. THAT'S COMING TO REPORT TO THE LEGISLATURE ON WHAT THE BARRIERS AND OTHER THINGS ARE INSTITUTIONALLY TO NUCLEAR POWER. WE'VE RESEARCHED STACKED QUITE EXTENSIVELY. UH IT'S A RATHER LENGTHY PERMITTING , EXPLAINS THE EXPENSIVE PERMITTING PROCESS. AH AND THE TECHNOLOGY IS BEING TALKED ABOUT RIGHT NOW. THEY CALL THEM SMALL MODULAR REACTORS THERE. THEY'RE STILL IN THE TEST MODE, AND THERE'S NO COMMERCIAL OPERATING REACTORS RIGHT NOW. AH SO THE ANSWER IS YES, IT'S NOT OFF THE TABLE, WHILE I WOULD SAY IS BASED ON THE RESEARCH WE'VE DONE TO DATE AND TALKING TO ENTITIES. BOTH HAVE HAD NUCLEAR POWER CURRENTLY AND THAT ARE AT THE NUCLEAR REGULATORY COMMISSION IS PROBABLY A RESOURCE THAT IF IT PROVES VIABLE, UH, THESE NEW TECHNOLOGIES DEVELOPMENT BECOME COMMERCIAL. THAT WOULD BE LOOKED AT IN THE LATE 20 THIRTIES EARLY 20 FORTIES. SIMPLY BECAUSE TO, FOR EXAMPLE, AND WE'RE RUNNING CLOSE ON TIME, BUT THERE'S REALLY IT. YES IT'S ABOUT $7500 MILLION TO GET. IT WAS CALLED AN EARLY SITE PERMIT, WHICH SAYS A PIECE OF LAND IS SUITABLE FOR NUCLEAR PROJECT. THAT'S ABOUT A 3 TO 4 OR FIVE YEAR PROCESS.THEN ONCE YOU GET THAT EARLY SITE PERMIT, AND THE NEXT STEP IS TO APPLY FOR CONSTRUCTION LICENSE. THAT'S A THAT'S DETAILED PLANS ON EXACTLY THE PRINT PLANT. YOU'RE GOING TO BUILD THE NRC. WE'LL PROBABLY TAKE 3 TO 5 YEARS TO REVIEW THAT AND WE'LL PLAY COST YOU ANYWHERE FROM 3 TO $500 MILLION FOR THAT PERMIT. ONCE YOU GET TO THAT PERMIT, YOU THEN HAVE THE CHOICE TO ACTUALLY PROCEED WITH CONSTRUCTION OR NOT. AND SO THAT'S WHERE, FOR EXAMPLE, UTILITY TO THE SOUTH OF US TENNESSEE VALLEY AUTHORITY OR TV. A THEY'VE ALREADY GOT IT REALLY SITE PERMIT FOR A CYCLE CLINCH RIVER. THEY ARE EVALUATING WHETHER TO APPLY FOR THAT CONSTRUCTION LICENSE. THEY EXPECT TO MAKE A DECISION EARLY NEXT YEAR, BASED ON PRESS REPORTS. AND SO WE'VE BEEN TALKING WITH THEM OF WHAT THEY'RE DOING THERE WHEN PEOPLE ARE WATCHING THAT CLOSELY. SO YEAH, IT'S SOMETHING THAT'S BEING EVALUATED, BUT BASED ON THE EXPERIENCE THAT JUST HAPPENED DOWN THERE, WRAPPING UP IN GEORGIA UH, SOUTHERN COMPANY , UH, JUST COMPLETED THE FIRST NUCLEAR REACTOR IN THIS COUNTRY SINCE BY THE EARLY 19 NINETIES.
UNFORTUNATELY THAT PROJECT WAS SIGNIFICANTLY OVER BUDGET OVER TIME. AND IT WAS ABOUT TO START CONSTRUCTION 2009, AND THEY JUST LITERALLY FINISHED THE FIRST REACTOR. LAST FEW MONTHS AGO WHEN COMMERCIAL THE SECOND ONE WILL BE NEXT YEAR SOMETIMES SO. IT'S A LENGTHY, RISKY AND FINANCIALLY BIG INVESTMENT. SO YES, WE'RE WATCHING IT, BUT IT'S A LENGTHY ANSWER. IT'S NOT NOT AN EASY HAS BUILDING OTHER TECHNOLOGIES. THANK YOU VERY MUCH, AND I REALLY APPRECIATE YOUR TIME TODAY. I DO HAVE SOME OTHER QUESTIONS WITH YOUR PERMISSION. I'D LIKE TO SEND THEM TO YOU AND GET SOME ANSWERS. IS THAT POSSIBLE? SORT OF PERFECTLY FINE, AND WE'LL GET
[01:25:03]
BACK TO YOU ON THE OTHER QUESTIONS YOU ASKED ABOUT. OKAY. THANK YOU VERY MUCH. ALRIGHT ONE MORE QUESTION JUST TO CLOSE THIS OUT. YOU TALKED ABOUT THE VERY BEGINNING HOW CUSTOMERS ARE AT THE CENTER OF THE WORK THAT YOU ALL DO. METRO GOVERNMENT HAS BOARDS. COMMISSIONS OF COURSE, ELECTED OFFICIALS TO HELP HOLD LOCAL GOVERNMENT ACCOUNTABLE. HOW CAN LOUISVILLE IAN'S GET INVOLVED WITH LG AND NEED TO DO THE SAME? WELL, UM. THE. WE OBVIOUSLY MAKE VARIOUS FILINGS OF THE PUBLIC SERVICE COMMISSION, EVERYTHING WE DO KIND OF CLOSE TO THE PUBLIC SERVICE COMMISSION. THE COMMISSION TAKES PUBLIC COMMENTS ON THOSE THINGS. UM YEAH, WE HAVE. VARIOUS OUTREACH ACTIVITIES. WE WERE OUT IN THE COMMUNITY AND GETTING INPUT ON THINGS. WE CERTAINLY WORK WITH VARIOUS BUSINESS ACCOUNTS ON A REGULAR BASIS TO MEET THEIR NEEDS. UM SO I'M NOT SURE IF THERE IS A PERFECT WAY AGAIN. WE'RE NOT DESIGNED AS A GOVERNMENTAL ENTITY, SO IT'S NOT AS EASY PERHAPS TO GIVE INPUT THOSE MIGHT BE GOVERNMENT. BUT THERE'S SOME SPECIFIC ISSUES OR IDEAS YOU HAVE IN MIND. I'M SURE BE HAPPY TO WORK WITH YOU AND THE COUNCIL TO FIGURE HOW TO PROVIDE THAT KIND OF INPUT. THANK YOU SO MUCH. AND THANK YOU ALL FOR BEING HERE. ALL RIGHT. WELL, THANK YOU FOR THE OPPORTUNITY. APPRECIATE ABSOLUTELY. NO MORE BUSINESS TODAY. SO WE'RE ADJOURNED. THANK YOU ALL FOR YOUR SERVICE.* This transcript was compiled from uncorrected Closed Captioning.