I'm gonna I'm gonna appoint slide.

Good morning.

Today is Thursday, uh June 25th.

Calling the Utilities Committee to chair.

Before we call the roll, Madam Clark, I want to let you know that we're gonna appoint uh Charles Slife Pro Temp until we have a uh a quorum of the utilities committee.

So Madam Clerk, can you please call the roll?

Present.

Ray, uh here, here's thank you, madam, madam chair or madam clerk.

Just uh I know we got a packed house today, just for logistics for everything.

I want to let everybody know how today is gonna go.

Um, we have about 12 pieces of legislation that we need to hear that we're gonna do first, then we're gonna do the data center piece of legislation, and then we have a presentation from uh first energy on their uh uh their ask of a rate increase.

I do want to let people know that they are setting up council chambers for any overflow there.

Hopefully, we're gonna get through the legislation extremely quick.

I know that a lot of people here are the data center piece for the legislation.

Um, so we'll we'll reserve enough time for there.

Anyone who wants to do public comment, please sign up with the clerk over there.

We have not decided yet, depending on how many people sign up for public comment, how long it will last, or if we'll let everybody speak, but we will take some public comment.

So at this time, director, uh, if you want to come to the table, we'll get things rolling quickly as we can.

Good morning, director.

We're gonna start out with uh two pieces of legislation.

We're gonna hear it together.

Ordinance number 587, 2026 by council members Casey and Griffin by departmental requests and emergency ordinance to amend Section 523.25 of the codified ordinance in Cleveland, Ohio, 1976 to amend ordinance number 1662-09 passed December 7, 2009, relating to interconnection service for distribution generation, and ordinance number 588 2026 by council members Casey and Griffin by Department of Request and Emergency Ordinance to amend Section 523.26 of the codified ordinance in Cleveland, Ohio 1976 to amend by ordinance number 1662-09 passed December 7th, 2009, relating to net metering services.

That's that's correct, Chairman, and good morning to the members of the committee.

Um, these the net metering ordinance or the codified ordinance of net metering established in 2009 is obviously antiquated when it comes to renewable generation behind the meter.

So these are your either commercial customers that do it on their warehouses, on their buildings or properties, and also residential customers that would do it on the rooftop when they generate power behind the meter and then consume that power within the structure or residence.

Historically, based on the 2009 codifieds, we we do credit and we anticipate to continue to credit.

However, the availability of the resource, what we have to maintain, roll trucks, the metering is what we intend to now collect based on a formula.

So there will continue to be reduction in their power supply recovery, which is the amount of money we pay as a utility to buy the power to deliver to the customer.

But we do seek approval to charge the kilowatt hour charge, which is the charges that we uh establish based on staffing capital, all those things.

So the two ordinances are joined together because we can't do one without the other.

Um essentially it our our main purpose is to continue to promote renewable generation behind the meter and make it as transparent as possible, but we don't want to um subsidize those renewable generation customers by the other customers because currently if you generate more than you consume, you get a zero across the board.

Fine, but all of our other customers continue to pay for the availability of that resource to that customer.

So we are coming up with a reasonable formula to charge for the availability of the of the power when those solar generation facilities are not producing.

And what we anticipate based on analysis for uh a long time, a average customer, and it's difficult to determine an average customer because everybody has different consumption, everybody has different solar panels on their roof and different technologies associated with it.

But we anticipate in the summer months approximately $13, and in the winter months, $16.

So we we will continue to credit if you produce more than you consume.

It will still be the availability of a zero bill that will roll over to the next bill.

But we're trying to be forward thinking in how this impacts our entire system and also the reliability of entering that power back into our distribution network.

So we're T we're we're being forward thinking, it is some iteration of this across the industry in a multitude of different variations.

But in our instance, to the 2009 net metering, if it continues to expand, and if we continue to promote local renewable generation behind the meter, then our other customers would continue to subsidize it, and we're trying to write that ship now so we can as I said continue to promote it and uh encourage all of our customers to benefit to reap the benefits of local renewable generation behind the meter.

It is kind of complicated, but um that's how I understand it.

And I apologize, the commissioner of CPP is out of town, as is CFO Troy.

They will be here without a doubt if this is successful at this committee uh at committee of the whole on the 15th of July.

All right, and this is just for residential, right?

So if we have a community solar project somewhere like West 11th or whatever, right?

How does that how does that work?

So a community solar project chairman um would be in front of the meter and then distributed through the grid into.

So this is all behind the meter.

Okay yes, residential, but also there are a number of large commercial customers who are seeking to have significant uh renewable energy production on, like I said, the rooftops or their properties, and which is which is great, and we want to continue to promote it, but we don't want those customers who are not benefiting from the solar re or any renewable generation behind the meter to subsidize that.

The availability of the resource, there's a cost associated with it because we still need to maintain the poles, the substations, the transformers, the meters, all that wire.

So that availability of the resource in the event of a cloudy day, and it's not generating, right?

But the next day it could generate a lot of power.

So what we're looking to do is to just spread that over all of the customers equally, fairly, uh, equitably, and transparently.

And right now it's kilowatt credit, correct?

But we're changing it to customer owned generation credit?

Well, the the yes, the customer owned generation credit is what you the customer would continue to receive the benefits of post-change.

Uh it's the power supply recovery that would be reduced by the amount of power that's generated behind the meter.

So the power supply recovery is reduced, but the kilowatt hour charge, which is based on how much it costs to run the business, would still apply.

All right, and then is there an impact to customers if credits are forfeited or removed at the end of the year?

Not at the end of the uh, yes.