* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. LESS THAN FIVE MINUTES. [00:00:02] UH, I'M GONNA CALL TO ORDER THE RESOURCES COMMITTEE MEETING FOR OCTOBER 1ST. UH, DINA, CAN YOU PLEASE DO A ROLL CALL? YES. CHAIR CORDERO [PLEDGE OF ALLEGIANCE] HERE AND MEMBER AUSTIN. THANK YOU. OKAY, THANK YOU. WE'LL GO INTO OUR REGULAR AGENDA ITEM. WE NEED TO APPROVE OUR JULY 16TH, 2026 RESOURCE COMMITTEE MEETING MINUTES. DO I HAVE A MOTION? SO, MOVE I SECOND, I'LL SECOND THAT. ANY PUBLIC COMMENT? ANY COMMISSIONER COMMENT? ALL THOSE IN FAVOR SAY AYE. AYE. ANY OPPOSED? NO, THE [ROLL CALL President Cordero announced that the General Manager evaluation closed session had been withdrawn and would be rescheduled at a future Board meeting.] MOTION CARRIES. ITEM NUMBER TWO IS TO RECEIVE A FILE TO RECEIVE AND FILE A REPORT ON THE CALIFORNIA WATER CONSERVATION REGULATORY FRAMEWORK. DO I HAVE A MOTION TO RECEIVE AND FILE? WE HAVE A MOTION. I'LL SECOND. UH, AND WE CALL ON DEAN WANG. GREAT. ALRIGHT, DEAN, WHILE YOU GIMME A CLICKER, UM, CHAIR CORONA, I'D LIKE TO JUST, YOU KNOW, SAY THAT APPRECIATE THE GOALS THAT YOU SET FORTH FOR YOUR YEAR AS, AS PRESIDENT OF THE BOARD. AND I THINK, UH, IT'S VERY APPROPRIATE TIMING THAT WE HAVE A RESOURCES COMMITTEE. UH, I'D LIKE TO TAKE THE OPPORTUNITY TO INTRODUCE A COUPLE OF NEW MEMBERS OF OUR TEAM. UH, WE HAVE FOUR NEW FELLOWS. UH, TWO OF THEM ARE, UH, CLIMATE, CALIFORNIA CLIMATE ACTION CORPS FELLOWS. AND SO WORKING TOWARDS THE VERY GOALS THAT, THAT YOU STATED IN, I'M SURE WE'RE VERY ENCOURAGED BY, UH, HEARING THE, THE GOALS THAT YOU HAVE, UH, FOR OUR DEPARTMENT. AND THEN WE HAVE TWO, UH, LONG BEACH, UH, UH, JOB CORPS FELLOWS AS WELL. AND SO THEY'LL BE SITTING OVER BY THE, THE KITCHEN AREA IN THOSE, UM, CUBICLES. SO YOU GUYS WILL SEE 'EM EVERY TIME YOU COME IN FOR, FOR BOARD MEETING. GREAT. SO I JUST WANTED TO INTRODUCE THEM AND THE AUDIENCE, UH, YOU WANNA RAISE YOUR HANDS AND GIVE AWAY? WE GET THEIR NAMES, PLEASE. OKAY, GREAT. THANK YOU VERY MUCH FOR BEING HERE. VERY WELCOME TO HAVE YOU HERE. THANK YOU. KEEP UP THE GOOD WORK, YOU'RE HOPE. AND YEAH, SO OUR OTHER TWO FELLOWS ARE ACTUALLY ON, UH, DIFFERENT SCHEDULE. SO THEY'RE NOT HERE ON THURSDAY, BUT, OKAY. SO, UH, TODAY'S TOPIC IS CALIFORNIA'S WATER CONSERVATION REGULATORY FRAMEWORK. UH, WE THOUGHT THIS WOULD BE AN APPROPRIATE TIME TO PRESENT THIS. UH, WE HAVE NOT PRESENTED THIS IN SEVERAL YEARS. UH, AND AS, AS YOU'LL SEE, AS I'LL GO THROUGH, THERE'S A LONG HISTORY THAT HAS, UH, WORKED US AS A STATE, UH, AND, UH, AN AGENCY TOWARDS THE CONSERVATION GOALS THAT WE WILL HAVE TO ACHIEVE, UH, NOT ONLY IN THE SHORT TERM, BUT, BUT REALLY, UH, FOR THE LONG TERM. SO, UH, TODAY'S PRESENTATION IS TO GIVE AN OVERVIEW OF, UH, WHAT IT IS THAT WE'RE LOOKING FORWARD TO, UH, AS FAR AS WORK THAT WE NEED TO DO. SO, UH, I MENTIONED A LONG HISTORY. IT ACTUALLY DATES BACK EVEN FARTHER THAN 1987, BUT REALLY 1987, UH, TO 1992, THE DROUGHT THAT HAPPENED BACK THEN, IT WAS REALLY THE FIRST TIME THAT, UH, AS A STATE, UH, THERE WAS AN EFFORT OR AN ATTEMPT TO STEP IN WITH STATE REGULATION TO MANDATE, UH, WATER CONSERVATION, WATER EFFICIENCY. UH, AND, AND DURING THAT, UM, DROUGHT, ESSENTIALLY THE ENVIRONMENTAL ORGANIZATIONS AND WATER AGENCIES STRUCK A, A, A NEGOTIATED AGREEMENT ESSENTIALLY TO, UH, PREVENT THE STATE FROM HAVING TO STEP IN WITH FORMAL, UH, REGULATION. UH, AND THAT'S WHY THERE WAS A MEMORANDUM OF US UNDERSTANDING ESTABLISHED. AND SO THERE WAS ME MEMORANDUM OF UNDERSTANDING IT WAS VOLUNTARY THAT WATER AGENCIES COULD ELECT TO ESSENTIALLY START IMPLEMENTING WATER CONSERVATION MEASURES. UM, AND THAT, UH, WAS IN PLACE, UH, ALL THE WAY UNTIL THE NEXT DROUGHT, 2007 TO 2009. UH, AND DURING THAT DROUGHT, THE LEGISLATION THAT CAME FORTH WAS WHAT WAS CALLED SBX SEVEN, UH, DASH SEVEN. AND THAT MANDATED EVERY WATER, UH, AGENCY TO REDUCE THEIR WATER USAGE BY 20%. IT WAS IN ACROSS THE BOARD. IT DIDN'T MATTER HOW WELL YOU WERE DOING CONSERVATION WISE OR HOW, YOU KNOW, IF YOU HADN'T STARTED DOING CONSERVATION, YOU HAD TO CUT 20%. AND FOR AN AGENCY THAT, LIKE LONG BEACH, WHO HAD ACTUALLY BEEN PARTICIPATING VOLUNTARILY AS PART OF THE MEMORANDUM OF UNDERSTANDING CUTTING 20% WAS MORE DIFFICULT THAN OTHER AGENCIES IN THE PAST THAT, UH, HADN'T NECESSARILY PARTICIPATED IN. SO THAT WAS FEEDBACK THAT THE STATE, UH, HEARD AND RECEIVED AND, AND TOOK INTO ACCOUNT, UH, AS THEY MOVE FORWARD INTO FUTURE YEARS, THAT, YOU KNOW, YOU DON'T WANT A ONE SIZE FITS ALL SOLUTION. YOU WANT TO TAKE INTO ACCOUNT THE UNIQUE, UH, CIRCUMSTANCES OF EVERY AGENCY IF YOU'RE GONNA CREATE FUTURE LEGISLATION. SO 2007, 2009, DROUGHT, UM, SET, SET A 2020 REDUCTION TARGET. AND THEN EVEN PRIOR TO 2020 COMING AROUND, WE HAD THE NEXT DROUGHT, UH, WHICH WAS 2012 TO 2016. SO DURING THAT DROUGHT, UH, CAME EXECUTIVE ORDER, UH, FROM, UH, GOVERNOR NEWSOM. UH, AND THAT LED TO AB 1668 AND, UH, SB 6 0 6, WHICH, UH, WERE KNOWN AS THE MAKING WATER CONSERVATION, [00:05:01] A CALIFORNIA WAY OF LIFE, UH, LEGISLATION. AND SO, UH, AS I MENTIONED, UH, PREVIOUSLY IT WAS A 20 BY 2020, UH, ACROSS THE BOARD, EVERYBODY HAD TO CUT 20% IN THIS NEW LEGISLATION. IT REALLY TOOK INTO ACCOUNT, UH, DIFFERENT FACTORS AND, AND THIS, UH, FRAMEWORK FOR MAKING WATER CONSERVATION A CALIFORNIA WAVE OF LIFE IS THE, UM, IS WHAT I'LL BE WALK WALKING THROUGH TODAY, WHAT THAT FRAMEWORK ENTAILS AND HOW THAT'S REALLY CUSTOMIZED TO EACH WATER AGENCY. UH, AND THEN SINCE, SINCE THAT LEGISLATION'S COME ABOUT, UH, WE'VE HAD ANOTHER DROUGHT, UH, 2020 TO 2023. AND OUT OF THAT, THE KEY LEGISLATION WAS AB 1572, WHICH WAS THE PROHIBITION OF, UH, IRRIGATION FOR NON-FUNCTIONAL TURF, ESSENTIALLY DECORATIVE TURF. AND THAT'S, UH, SET TO TAKE EFFECT, UH, STARTING HERE, UH, IN, IN JANUARY, 2027 FOR, FOR CERTAIN, UM, TYPES OF NON-FUNCTIONAL TURF. SO THAT'S A, A BRIEF HISTORY OF DROUGHTS AND HOW THAT'S LED TO CONSERVATION AND MANDATED CONSERVATION, UH, FROM THE STATE. SO MAKING CON WATER CONSERVATION A CALIFORNIA WAY OF LIFE REGULATION. UH, I'VE BORROWED THESE SLIDES FROM, UH, CALIFORNIA WATER EFFICIENCY PARTNERSHIP, UH, WHICH IS, YOU KNOW, TO, TO GO INTO THE HISTORY OF, OF CONSERVATION. IT WAS, IS THIS ORGANIZATION, ESSENTIALLY, THERE'S, I WON'T GO INTO THE FULL HISTORY, BUT, UM, IT CAME OUT OF THE MLU THAT I, I TALKED ABOUT IN THE, THAT FIRST DROUGHT. UM, THERE WAS AN ORGANIZATION ESTABLISHED, UH, TO HELP CALIFORNIA WATER AGENCIES ACHIEVE CONSERVATION. WE'RE A MEMBER OF THIS A, UH, UH, PARTNERSHIP. UH, AND THEY HAVE A LOT OF TOOLS AND RESOURCES THAT HELP, UH, AGENCIES SMALLER THAN LONG BEACH AND LONG, LARGER THAN LONG BEACH ESSENTIALLY HELP ACHIEVE OUR WATER CONSERVATION GOALS, UH, COLLECTIVELY RATHER THAN ALL OF US HAVING TO, UM, UNDERTAKE INITIATIVES INDIVIDUALLY. AND SO, FOR INSTANCE, THESE SLIDES, A LOT OF THESE MATERIALS, UH, SAVED ME A LOT OF TIME, BUT NOT HAVING TO, TO RECREATE, UH, REINVENT THE WHEEL. SO I WANNA GIVE THEM CREDIT. AND, UH, SO AS PART OF THE REGULATION FRAMEWORK, THERE ARE THE THREE, THREE KEY PARTS THAT I'M GONNA TALK ABOUT TODAY. ONE IS THE URBAN WATER USE SUBJECTIVE, ESSENTIALLY A TARGET THAT WE'RE GONNA HAVE TO MEET. UH, THE SECOND IS A COMMERCIAL, INDUSTRIAL AND INSTITUTIONAL, OR CII PERFORMANCE MEASURES ESSENTIALLY ON THE COMMERCIAL SIDE, THERE'S NOT A, A NUMERIC TARGET, BUT THERE ARE, UH, BEST MANAGEMENT PRACTICES THAT WE'LL HAVE TO, TO IMPLEMENT. AND THEN FINALLY, THE REPORTING AND ENFORCEMENT. HOW DO WE, UH, SHOW THE STATE DEMONSTRATE TO THE STATE THAT WE'RE IN COMPLIANCE WITH THE REGULATION? SO TO START WITH, THE URBAN WATER USE SUBJECTIVE, IT'S MADE UP, MADE UP OF SEVERAL, UH, COMPONENTS. UH, AND SO, UH, A LOT OF TIMES YOU'LL HEAR IN THE NEWS OR YOU'LL HEAR DISCUSSED, YOU KNOW, WHEN WE'RE LOOKING AT HOW EFFICIENT A WATER AGENCY IS, WHAT'S YOUR GPCD GALLONS PER CAPITA PER DAY, RIGHT? AND SO, UH, THERE'S DIFFERENT NUMBERS, UH, THROUGH ACADEMIA AND RESEARCH AS FAR AS WHAT AN EFFICIENT HOUSEHOLD SHOULD LOOK LIKE. UH, AND THIS REGULATION REALLY CODIFIES THAT. AS FAR AS SAYING THAT BY A CERTAIN DATE, UH, IN THE FUTURE, YOU WILL HAVE TO REDUCE DOWN TO 47 GPCD AND 42 GPCD, UM, AS TARGETS. AND SO THAT'S THE INDOOR RESIDENTIAL WATER BUDGET, OUTDOOR RESIDENTIAL WATER BUDGET. WATER BUDGET LOOKS AT HOW MUCH, UH, IRRIGATION IS HAPPENING ON IRRIGATION, UH, ON RESIDENTIAL, UH, PARCELS. AND SO WHEN WE LOOK AT OUR CUSTOMERS HERE IN LONG BEACH, UH, SINGLE FAMILY HOUSEHOLDS AND HOW THEY IRRIGATE, UH, THERE'S A CERTAIN CALCULATION THAT GOES TO, OKAY, HOW MUCH AREA DO THEY HAVE? AND, UH, HOW HOT IS IT? WHAT IS THE WEATHER? WHAT IS THE APPROPRIATE AMOUNT OF WATER THAT SHOULD BE USED FOR IRRIGATION? AND THAT'S CALCULATED AS A BUDGET. AND THEN THERE'S A CII OR COMMERCIAL, ESSENTIALLY NON-RESIDENTIAL, UH, DEDICATED IRRIGATION METER, OUTDOOR WATER BUDGET. AND SO THIS LOOKS AT HOW MUCH WATER SHOULD BE USED ON COMMERCIAL PROPERTIES FOR IRRIGATION. AND THERE'S CALCULATION FOR, FOR THAT. AND THEN THERE'S A WATER LOSS BUDGET. SO, YOU KNOW, AS MUCH AS WE TRY TO MINIMIZE HOW MUCH WATER IS LOST, THERE'S NOT, UH, IT'S INEVITABLE THAT WE WILL LOSE SOME WATER IN THE SYSTEM. AND, BUT WE WANNA MINIMIZE THAT. AND THE STATE HAS A CERTAIN CALCULATIONS AS FAR AS WHAT STANDARDS WE HAVE TO MAINTAIN FOR WATER LOSS. AND THAT GETS CALCULATED INTO AN AMOUNT OF WATER THAT WE ARE ALLOWED TO LOSE, UH, GOING FORWARD, AND, AND THAT THE STANDARDS FOR THAT WILL, YOU KNOW, BECOME MORE AND MORE STRINGENT OVER TIME AS WELL. AND THEN FINALLY, THERE ARE SOME ADJUSTMENTS. UM, FOR INSTANCE, SOME, YOU KNOW, IF IF YOU HAVE AGRICULTURE IN YOUR AGENCY OR, YOU KNOW, UH, ANIMALS USE CERTAIN, UM, UH, EVAPORATIVE COOLING, UH, TECHNOLOGIES THAT YOU GET ALLOWANCES FOR, THAT I, FOR THE MOST PART, I, I DON'T ANTICIPATE, UH, LONG BEACH WILL BE USING MANY OF THESE ADJUSTMENTS. BUT, UH, THEY ARE THERE, UH, AS PART OF THE, THE CALCULATION. SO ALL OF THESE BUDGETS ADDED TOGETHER, ESSENTIALLY ADD UP TO A CERTAIN AMOUNT OF WATER THAT LONG BEACH IS SUPPOSED TO BE USING, UH, IF WE'RE BEING EFFICIENT. AND IT, UH, IT WILL BE OUR RESPONSIBILITY AS AN AGENCY TO MEET THAT TARGET. UM, AND SO, [00:10:01] UH, THAT, THAT WOULD BE OUR TARGET AS A SUPPLIER IS NOT A TARGET FOR EACH INDIVIDUAL CUSTOMER THAT WE HAVE, ALTHOUGH, YOU KNOW, THE WAY IT'S CALCULATED, IT AGGREGATES WHAT EACH OF OUR CUSTOMERS SHOULD BE USING THE RESPONSIBILITY TO MEET THIS TARGET IS ON US AS A SUPPLIER. YES. SO EXPLAIN WATER LOSS, IS THAT LEAKS OR IS IT WATER THAT FLOWS TO THE OCEAN OR WHAT? IT IS LEAKS ON OUR SIDE OF THE METER. SO LIKE IN OUR DISTRIBUTION SYSTEM, PIPE, YOU KNOW, UH, MAIN, MAIN, UH, TRANSMISSION MAIN BREAKS, UM, ANYTHING BEFORE THE METER, THANK YOU. TREATMENT, PLANT LOSSES, UH, ANY, YEAH, BASICALLY ANYTHING THAT, THAT IS BEFORE THE WATER GETS TO THE CUSTOMER. AFTER THE, THE, UM, UH, WATER GETS TO THE CUSTOMER, WE DO HAVE LEAK PROGRAMS TO HELP REDUCE AND MINIMIZE THAT. AND THAT KIND OF GOES TOWARDS MORE TOWARDS THE CONSERVATION AND EFFICIENCY SIDE OF IT. UH, BUT YEAH, WHEN WE'RE TALKING ABOUT WATER LOSS, IT'S, IT'S THE UTILITIES LOSS OF WATER. YES. AND THE, IT'S WEIRD SEEING YOU ON, ON FROM THERE. NOW I KNOW WHAT THIS FEELS LIKE, UM, DEAN, CORRECT ME IF I'M WRONG ON THIS PART, BUT THE ASPECT OF WATER LOSS FOR THE OPERATIONS, BECAUSE WE HAVE A CENTRALIZED TREATMENT PLANT, THE VERY NATURE OF THOSE TREATMENT PROCESSES IS GONNA HAVE A CERTAIN WASTE STREAM ASSOCIATED WITH IT. SO THERE, THAT IS A CERTAIN VOLUME OF WATER, THEN WE HAVE THE LEAKS, RIGHT? IT'S THAT TOTAL COMBINATION THAT REPRESENTS A CERTAIN AMOUNT OF LOSS THAT YOU HAVE TO REPORT, CORRECT? YES. IT'S, IT'S FROM EVERYWHERE FROM WHERE THE WATER COMES OUTTA THE GROUND OR GETS INTO OUR SYSTEM FROM METROPOLITAN UP TO THE POINT OF DELIVERY TO THE CUSTOMER. UH, ANY MOLECULE OF WATER THAT'S LOST, WE'RE, WE'RE CALCULATING AN ACCOUNTING FOR. WOW. OKAY. THANK YOU. ALRIGHT. OKAY. SO, UH, THAT WAS URBAN WATER USE TARGET THAT WE HAVE. UH, THAT'S QUANTITATIVE TARGET. UH, NOW I'LL GO INTO THE ESSENTIALLY PERFORMANCE MEASURES. SO, UH, MORE, UH, ACTIONS THAT WE WILL HAVE TO TAKE. AND THESE WERE SPECIFIC TO THE COMMERCIAL INDUSTRIAL INSTITUTIONAL SECTORS. AND THE THOUGHT THERE IS, UH, WE, WE WANT A FLOURISHING ECONOMY. WE DON'T WANNA RESTRICT HOW MUCH WATER NECESSARILY BUSINESSES USE. WE WANNA MAKE SURE THEY'RE USING IT EFFICIENTLY, BUT AT THE SAME TIME, UM, THE, THE EFFICIENCY THAT WE WANNA ACHIEVE FOR COMMERCIAL, UH, BUSINESSES IS VERY DIFFERENT THAN RESIDENTIAL SIDE. AND SO, UH, ON THE BUSINESS SIDE IS FOCUSING ON WHAT PRACTICES CAN WE, UH, IMPLEMENT TO MAKE SURE THAT THEY ARE BEING AS EFFICIENT AS THEY CAN BE WITH THEIR WATER WITHOUT HAVING A QUANTITATIVE TARGET PER SE. SO THE FIRST STEP IN THIS PROCESS WILL BE TO CLASSIFY THE COMMERCIAL, UH, CUSTOMERS INTO, FOR INSTANCE, UH, RESTAURANTS, HOTELS, SCHOOLS, ET CETERA. WHAT TYPE OF BUSINESS ARE WE DEALING WITH? AND THAT WILL BETTER INFORM WHAT TYPE OF EFFICIENCY MEASURES ARE POSSIBLE FOR THOSE TYPE OF BUSINESSES. AND THAT WILL HAVE TO HAPPEN BY, UH, 2027. AND, UH, WE HAVE ALEX AZOS HERE WHO IN THE AUDIENCE WHO'S ON OUR TEAM, AND HE IS, UH, SINGLE HANDEDLY CHURNING AWAY AT CLASSIFYING ALL OF THE DIFFERENT, UH, COMMERCIAL CUSTOMERS THAT WE HAVE THROUGHOUT, UH, LONG BEACH. SO ONCE WE'VE IDENTIFIED WHAT CLASSIFICATIONS ALL OF OUR COMMERCIAL CUSTOMERS EXIST IN, UH, THEN WE WILL BE ABLE TO LOOK AT WHAT ARE THE HIGHEST, UH, WATER USING CUSTOMERS IN THOSE CLASSIFICATIONS. AND PER THE REGULATION, WE'LL HAVE TO UNDERTAKE CERTAIN MEASURES, UH, FOR THE TOP 2.5% OF OUR WATER USERS IN THOSE CLASSIFICATIONS. AND THEN SLIGHTLY LESSER, UM, MEASURES FOR THE 20%, UH, TO HIGHEST WATER USERS IN THOSE CLASSIFICATIONS. UM, AS WELL AS JUST, UH, WE'LL ALSO HAVE TO UN UNDERTAKE MEASURES FOR 2.5% OF THE HIGHEST WATER USERS OVERALL, REGARDLESS OF CLASSIFICATION, AS WELL AS 20%. SO SOME OF THOSE MEASURES, FOR INSTANCE, WILL BE, UH, WHAT ARE, UH, CONSIDERED BEST MANAGEMENT [CONSENT CALENDAR] PRACTICES THAT'S, UH, OUTREACHING AND EDUCATION, UH, ESSENTIALLY MAKING SURE WE'RE REACHING OUT TO THESE COMMERCIAL CUSTOMERS TO, UH, ADVISE THEM OF WATER EFFICIENCY OPPORTUNITIES. THAT INCLUDES INCENTIVES, UH, INDOOR OUTDOOR INCENTIVES, LANDSCAPE PROGRAMS, COLLABORATION, UH, AND THEN, UH, OPERATIONAL IMPROVEMENTS AS WELL. SO A LOT OF DIFFERENT, UH, BEST MANAGEMENT PRACTICES THAT WE CAN THEN APPLY ONCE WE KNOW WHO IT IS THAT WE ARE BY REGULATION, UH, REQUIRED TO, UH, PERFORM THOSE [5. 26-56288 Recommendation to adopt Request for Proposal No. UD-26-345 and award a contract to Water Resources Economics LLC, of Culver City, California, for a Cost of Service and Rate Study, in an amount not to exceed $122,953 for the first one (1) year period, with the option to renew for four additional one-year periods at the following rates: first renewal: not to exceed $30,000, second renewal: not to exceed $32,500, third renewal: not to exceed $35,000, and fourth renewal: not to exceed $37,500, for a total contract amount not to exceed $257,953; and authorize the General Manager to execute all documents necessary to enter into the contract, including any amendments.       Suggested Action: Approve recommendation. ] BEST MANAGEMENT PRACTICES FOR. I HAVE A QUICK QUESTION ON THAT. YES. UM, SO DEAN, THE WHOLE ISSUE OF, OF REGULATIONS AND COMPLIANCE, HOW DO THESE SMALLER WATER AGENCIES, HOW ARE THEY ABLE TO DO THAT? THAT IF THEY DON'T HAVE STAFF AND THEY DON'T HAVE THE EXPERTISE, HOW DO THEY COMPLY? YEAH, SO, UH, THAT'S A GREAT QUESTION AND, AND YOU KNOW, COMPLIANCE IS, [00:15:01] AND I MENTIONED THE CALIFORNIA WATER EFFICIENCY PARTNERSHIP, THERE'S SOME HELP AVAILABLE AT, AT THAT LEVEL. AND SO WHEN WE'RE TALKING ABOUT LIKE OUTREACH EDUCATION, THAT'S WHERE A LOT OF, LIKE THE PRE-MADE TEMPLATES CAN JUST BE APPLIED, YOU KNOW, MAYBE CHANGE A LOGO AND, AND THEN YOU CAN, YOU MAIL THAT OUT TO, TO YOUR CUSTOMERS. UM, ANOTHER WAY IS, YOU KNOW, THROUGH METROPOLITAN WATER DISTRICTS, SO ON HERE IS INCENTIVES. SO FOR INSTANCE, IF METROPOLITAN, UH, OFFERS AN INCENTIVE FOR TURF REPLACEMENT, ALL THESE SMALLER AGENCIES THAT, THAT WORK THROUGH METROPOLITAN TO OFFER THE INCENTIVE QUALIFIED BY, UM, OFFERING THAT AS WELL. SO THEY ESSENTIALLY LEAN ON ORGANIZATIONS AND AND WHOLESALERS TO, TO HELP THEM ACHIEVE THOSE GOALS. BUT THAT'S NOT TO SAY THAT THERE'S NOT WORK, ANY WORK ON THE, THE STAFF THERE, THERE STILL IS. AND, AND THAT'S PART OF THE CHALLENGE. OKAY. NOT TO MAKE MORE WORK, BUT I I, YOU DO SUCH A GOOD JOB, ALL OF YOU THAT, THAT WHEN YOU DID THE, UH, THE PANEL DISCUSSION, UM, I KNOW THEY'RE GONNA DO ANOTHER ONE AT METROPOLITAN, AND ONE OF THE THINGS THAT I RECOMMENDED WAS BEST PRACTICES, SO EXACTLY THIS SORT OF THING. AND IT JUST SEEMS LIKE POSSIBLY THROUGH METROPOLITAN, IF THEY COULD PULL TOGETHER LARGER AGENCIES WHO COULD DO SOMETHING LIKE THAT TO SUPPORT THE LARGER AGENCY, THE CALIFORNIA WHATEVER WATER EFFICIENCY PERSON YEAH. WATER EFFICIENCY, YES. YEAH. YOU KNOW, IN A, IN A PARTNERSHIP WITH THEM, WITH ACTUAL, AN ACTUAL AGENCY THAT WOULD BE ABLE TO COME IN WOULD BE A GREAT THING. I KNOW IT PUTS A LITTLE MORE WORK ON YOUR END, BUT IT, IT JUST SUPPORTS THE OVERALL NETWORK. RIGHT. AND, AND IF YOU REMEMBER MY COMMENTS, I THINK I WAS ADVOCATING FOR METROPOLITAN TO, TO KIND OF STEP INTO SOME OF THOSE ROLES. SO, YOU KNOW, I'M, I'M KIND OF OFFLOADING SOME OF THAT RESPONSIBILITY, HOPING TO OFFLOAD SOME OF THAT TO, UM, YOU KNOW, LARGER, UH, ENTITIES AS WELL. THANK YOU. OKAY. SO, UH, THIRD COMPONENT IS REPORTING ENFORCEMENT. SO ANNUAL REPORTS, UH, ARE SUBMITTED TO THE STATE WATER RESOURCES CONTROL BOARD EACH YEAR, AND WE ACTUALLY STARTED REPORTING, UH, THANKS TO, TO JOEY, UH, COMPILING ALL THIS. WE STARTED REPORTING, UH, IN JANUARY 1ST, 2025, AND WE'LL CONTINUE TO DO SO EACH YEAR. UM, THE FIRST COUPLE OF REPORTS WERE ACTUALLY JUST TO START ESTABLISHING A BASELINE TO SEE WHERE EACH AGENCY WAS. UM, BUT REAL COMPLIANCE ENFORCEMENTS BEGINS JANUARY 1ST, 2027, WHICH IS WHY WE'RE BRINGING THIS ITEM BEFORE THE BOARD SO THAT YOU'RE ALL AWARE OF THE, THE MANDATED, UH, CONSERVATION TARGETS THAT WE WILL HAVE TO MEET, ANTICIPATE WE WILL MEET THOSE TARGETS. UH, THE, THE TARGETS DO GET MORE AGGRESSIVE AND, AND, UH, I SHOULDN'T SAY AGGRESSIVE, MORE CHALLENGING OVER TIME. THEY EXPECT MORE CONSERVATION OVER TIME. SO WE'LL HAVE TO CONTINUE TO DO THE WORK THAT WE'RE DOING TO MEET THOSE FUTURE TARGETS AS THEY RATCHET DOWN. BUT, UM, THE FIRST COMPLIANCE ENFORCEMENT REPORT WILL BE DUE JANUARY 1ST, 2027. AND THEN THERE IS THE POTENTIAL FINE FROM THE STATE FOR, FOR NON-COMPLIANCE. AND SO THE TEXT HERE IS TINY. UH, BUT REALLY THE, THE POINT OF THIS IS JUST TO SHOW, YOU KNOW, THE STAR IS WHERE WE'RE AT ON, ON THE TIMELINE, AND TO SHOW THAT THERE'S A LOT MORE WORK AND A LOT MORE TARGETS THAT, UH, WE HAVE TO ACHIEVE GOING OUT INTO THE FUTURE. UH, YOU KNOW, I MENTIONED THE RATCHETING DOWN AND, AND THE KIND OF MORE AGGRESSIVE TARGETS, UH, AND THAT THIS, THIS IS TO SHOW THAT THAT OUTLINE OF REALLY EVERYTHING THAT, THAT IS COMING, UH, PART OF THE REGULATION. SO, UH, REALLY JUST TO HIGHLIGHT, YOU KNOW, THE WORK THAT, THAT OUR TEAM HAS AHEAD OF US. AND WITH THAT, I CONCLUDE MY PRESENTATION AND OPEN TO QUESTIONS FROM THE COMMITTEE. OKAY. UM, DO WE HAVE ANY PUBLIC COMMENTS? ANY COMMISSIONER COMMENTS? SO VERY, VERY INFORMATIVE AS USUAL, DEAN. THANK YOU VERY MUCH. SO WHAT CAN WE DO AT HOME? I MEAN, THERE IS A REG RESIDENTIAL, UM, IN INDOOR AND OUTDOOR STANDARDS, MEASUREMENT STANDARDS. UM, HOW DO WE GET THAT INFORMATION OUT TO THE PUBLIC SO THAT FOLKS AT HOME ARE, ARE, UH, AWARE AND, AND AND WORKING TO CONCERN? SURE, ABSOLUTELY. AND, AND YOU KNOW, THAT'S WHERE WE WERE WORKING HAND IN HAND WITH OUR PUBLIC AFFAIRS TEAM AND REALLY TRYING TO PROMOTE THE, THE PROGRAMS THAT WE DO OFFER ALREADY. UH, ONE OF THE, THE KEY ONES IS, UH, A DIRECT INSTALLATION PROGRAM THAT WE'RE OFFERING THAT GOES INTO RETROFITS, ESSENTIALLY, UH, NOT JUST WATER USING DEVICES, BUT SINCE WE'RE A, A MERGED UTILITY, WATER AND GAS USING DEVICES, UH, TO BECOME MORE EFFICIENT. SO, YOU KNOW, THE MORE PEOPLE THAT WE CAN HAVE TAKE ADVANTAGE OF THAT PROGRAM, UM, AT NO COST TO, TO THEM, UH, THE, THE BETTER WE WILL BE SITUATED TO MEET OUR TARGETS. SO I, I GUESS MY QUESTION IS MORE, MORE TO THE POINT OF, WELL, WHAT NUMBERS SHOULD WE BE LOOKING TO ACHIEVE AT THE RESIDENTIAL LEVEL? I MEAN, IS THERE, IS THAT SOMETHING THAT WE WE'RE GONNA LOOK AT ON OUR BILL TO DETERMINE, OKAY, I'M HERE TODAY AND I NEED TO BE HERE TOMORROW OR SIX MONTHS FROM NOW, A YEAR FROM NOW? SURE. AND, AND SO THAT'S WHERE INDIVIDUAL HOUSEHOLDS DON'T NECESSARILY HAVE A TARGET THAT, YOU KNOW, THAT'S THE TARGET FOR US TO ACHIEVE COLLECTIVELY, RIGHT? SO, YOU KNOW, AS A CITY, WE'LL HAVE SOME PEOPLE THAT BRING UP THE AVERAGE AND WE'LL HAVE SOME PEOPLE THAT, YOU KNOW, OVERACHIEVE AND HELP US BRING DOWN OUR AVERAGE. THE, THE TARGET IS FOR US AS A UTILITY. UM, [00:20:01] AND SO, YOU KNOW, UH, WHAT'S INCLUDED IS MULTIFAMILY AND SINGLE FAMILY. AND SO WHEN YOU LOOK AT, UM, YOU KNOW, JUST THE EFFICIENCY OF, OF INDOOR, UH, USES WITHIN THE DIFFERENT TYPES OF HOUSEHOLDS, IT'S DIFFERENT. SO I'D SAY THERE'S DIFFERENT TARGET FOR EVERY HOUSE. DO YOUR BEST. EVERYBODY SHOULD DO YOUR BEST. SO, SO IS THERE LIKE A DASHBOARD THAT WE CAN MONITOR OUR PROGRESS AS A PUBLIC OR A CITY TO, TO SEE THAT INFORMATION REAL TIME OVER OVER TIME? THERE IS, YES. SO THE STATE HAS A, UH, TRACKING DASHBOARD ESSENTIALLY BASED ON THE LATEST, UM, DATA THAT IS REPORTED TO THEM BY THE AGENCIES. AND THEY'LL, THEY'LL PLUG IT INTO THE DASHBOARD TO KIND OF HIGHLIGHT HOW WE'RE TRACKING, UH, INDIVIDUALLY FOR HOUSEHOLDS. WE HAVE, UM, OUR CUSTOMER PORTALS NOW THAT, THAT SHOW, UH, ALLOW PEOPLE TO SEE THEIR, YOU KNOW, THEIR HOURLY USAGE, BUT ALSO TO SEE KIND OF ON A, A DAILY OR MONTHLY BASIS HOW MUCH WATER YOU THEY'RE USING. AND SO OUR CUSTOMERS, THEY'RE REALLY INTERESTED OR ARE INTERESTED, CAN LOG INTO THE PORTAL AND, AND SEE ON A DAILY BASIS HOW MANY GALLONS, UH, YOUR HOUSEHOLD IS USING. THANK YOU SO MUCH. I WOULD THINK THAT IT PUTS AN EXTRA BURDEN ON, UH, EXTERNAL AFFAIRS, UH, TO GO OUT AND TO TELL PEOPLE ABOUT CONSERVATION AS A WAY OF LIFE, CONTINUE THAT WHEN YOU'VE GOT PROJECTIONS OF RAINFALL FOR AINO. UH, WE'VE TALKED ABOUT THAT BEFORE, BUT I'M SURE THAT'S GONNA BE A BIT OF A RUB PEOPLE TO UNDERSTAND. SO IF I UNDERSTAND THE, THE COMMENT, IT'S, UH, THERE'LL BE A LOT OF RAIN AND IT'LL BE HARD TO GET THE COMMUNICATION MESSAGE. YEAH, WELL, YOU KNOW, I, I THINK THAT'S THE, UM, CONTRADICTION THAT, THAT WHEN THERE'S ACTUALLY MORE RAIN, WE ACTUALLY HAVE VERY LITTLE OR MUCH LESS WATER USE. 'CAUSE PEOPLE AREN'T IRRIGATING, UM, YOU KNOW, UH, COMMERCIAL BUSINESSES OR PARKS AREN'T IRRIGATING AS MUCH EITHER, SO WATER USE DOES TEND TO DRASTICALLY COME DOWN JUST FROM THAT STANDPOINT. BUT YEAH, AS FAR AS LIKE THE INDOOR WATER USES AND, AND MAKING SURE PEOPLE ARE CONSCIOUS OF HOW THEY'RE USING WATER INDOORS WHEN IT LOOKS LIKE THERE'S SO MUCH WATER OUTDOORS, I THINK THAT IS A GREAT POINT, IS HOW DO WE MAKE SURE WE DON'T HAVE A, UH, A BACK, YOU KNOW, BACK BACKTRACKING ON PROGRESS THAT WE'VE MADE WHEN IT IS, OR IF IT IS REALLY WET THIS WINTER. THAT'S RIGHT. GOOD COMMENT. AND, AND AGAIN, GET GETTING THE MESSAGE THAT IT, SO IT'S A LONG-TERM THING. IF CLIMATE CHANGE IS NOT GONNA, WE'RE NOT GONNA GET TO THE POINT WHERE WE'RE DONE. AND IT'S A LONG-TERM PROCESS, AND THIS IS A WAY OF LIFE NOW. WE LIVE IN A, LIVE IN A DESERT. WE LIVE IN AN AREA THAT'S PREDICTABLE IN DROUGHT, UM, COLORADO RIVER ISSUES, YOU KNOW, THAT SORT OF THING. SO, UM, YEAH, ABSOLUTELY. THANK YOU FOR YOUR GOOD WORK. THANK YOU. THANK YOU. IS THAT IT, DEAN? YES, THAT WAS, HEY, WONDERFUL. IT WAS, YOU ALWAYS DO A GREAT JOB. THANK YOU SO MUCH. YOU GIVE US A LOT TO THINK ABOUT. UH, COMMISSIONER, DO YOU HAVE ANY OTHER COMMENTS? OKAY, DO WE HAVE ANY PUBLIC COMMENTS? A SEEING NONE, UM, ALL THOSE IN FAVOR OF, UH, RECEIVING AND FILING THIS REPORT SAY AYE. AYE. ANY OPPOSED? OKAY, CARRIE. THANK YOU, DEAN. ALL RIGHT. UP NEXT ARE, LAST ITEM IS ITEM NUMBER THREE TO RECEIVE AND FILE PRESENTATION, AN INFORMATIONAL PRESENTATION REGARDING, UH, DEPARTMENT'S NATURAL GAS SUPPLY, TRANSPORTATION, STORAGE, AND PROCUREMENT OPERATIONS. AND, UH, THIS MORNING IT SAYS, CALL ON DEAN MORNING. YES, I'D JUST LIKE TO, TO QUICKLY INTRODUCE, UM, THIS ITEM OR SERIES OF ITEMS AND, AND THIS IS AT THE, THE REQUEST OF, OF CHAIR CORDERO. OVER THE YEARS, WE'VE PROVIDED SEVERAL WATER SUPPLY UPDATES, UM, AND, AND REALLY PROVIDED A, A CONTEXT OF WHAT THE, THE LARGER REGIONAL STATE, UH, ISSUES ARE, YOU KNOW, PERTAINING WATER RESOURCES. AND, UH, TODAY REPRESENTS AN, AN EFFORT TO INITIATE A SIMILAR EFFORT FOR GAS. UH, AND SO WE'RE REALLY TRYING TO, TO START EDUCATING THE, THE CHAIR OR THE, THE COMMITTEE AND, AND, YOU KNOW, THE BROADER BOARD ON, UH, GAS RESOURCES ISSUES. UH, AND SO WE CAN'T DO IT ALL AT ONCE. THERE'S NO WAY WE COULD PRESENT ALL OF GAS IN, IN, IN ONE COMMITTEE. AND SO, UH, TODAY WE'RE, WE'RE DOING OUR BEST TO INITIATE THE, THE TOPIC, UH, GIVE SOME HIGH LEVEL, UH, INSIGHTS, BUT IT'S THE FULL INTENTION TO MAKE THIS A REGULAR, UM, UH, ENGAGEMENT WITH THE COMMITTEE IN THE SENSE OF PRESENTING, UH, HIGH LEVEL TOPIC PICKS. AND THEN, UH, OVER, OVER TIME, EVENTUALLY DRILLING DOWN MORE IN DEPTH INTO SOME OF THE, THE, THE TOPICS THAT WE'VE HAD, UH, ITEMS PRESENTED AT BOARD, SUCH AS HEDGING OR, OR, UH, CERTAIN CONTRACTS THAT HAVE BEEN BROUGHT FORTH. SO, UH, WITH THAT, I'LL TURN IT OVER TO DENNIS BURKE AND, AND TONY FOSTER FOR THE PRESENTATION. GOOD MORNING. UH, WELL, MY NAME IS DENNIS BURKE. I'M THE ENERGY SERVICES OFFICER, UH, AND I'M IN CHARGE OF THE GAS PROCUREMENT DIVISION. UH, TO GIVE A LITTLE BACKGROUND, THIS IS MY FIRST TIME PRESENTING. UH, I'VE BEEN WITH THE CITY FOR 19 YEARS, AND, UH, THE WHOLE 19 YEARS I HAVE BEEN WORKING IN GAS PROCUREMENT WITH ORIGINALLY GAS AND OIL, AND NOW THE UTILITIES DEPARTMENT. OKAY. TODAY I'M GONNA BE TALKING ABOUT HOW SUPPLY, TRANSPORTATION, STORAGE AND BALANCING WORK TOGETHER TO SERVE LONG BEACH CUSTOMERS. THE TOPIC IS COVERED ARE WHAT DOES THE NATURAL GAS ORIGINATE? [00:25:01] HOW DOES GAS REACH LONG BEACH? HOW DOES LONG BEACH UTILITIES MANAGE GAS ON A DAILY BASIS? AND HOW DOES GAS PLANNING DIFFER FOR WATER PLANNING? GOOD ONE. OKAY. WHERE DOES GAS ORIGINATE? UM, GAS BEGA BEGINS WITH THE PRODUCERS. THESE ARE THE ACTUAL COMPANIES THAT, THAT PRODUCE GAS, WHETHER IT'S, UH, FROM A WELL PUMPING GAS DIRECTLY FROM THE GROUND, OR WHETHER THERE'S A BYPRODUCT OF OIL PRODUCTION THROUGH GAS PROCUREMENT. PRO CONTRACTS, MARKETERS SUCH AS SHELL BP OR GOLDMAN SACHS PURCHASE A CERTAIN QUANTITY OF GAS FROM THESE PRODUCERS, WHICH IS DELIVERED INTO THE INTERSTATE PIPELINE SYSTEM. FROM THERE, THROUGH PIPELINE CONTRACTS, THE MARKETERS DETERMINED WHERE THE GAS ULTIMATELY FLOWS. IN THE CASE OF LONG BEACH'S, UH, GAS PREPAY DEAL, MERRILL LYNCH PURCHASES MUCH OF THE GAS FROM THE ROCKIES AND FLOWS IT INTO THE SOCAL GAS SYSTEM. OVERALL, ABOUT 90% OF CALIFORNIA'S NATURAL GAS SUPPLY COMES FROM OUTTA STATE. AND AS YOU CAN SEE FROM THE MAP, UH, THE COUNTRY IS CRISSCROSSED. UM, WITH A SERIES OF INTERCONNECTED GAS PIPELINES, ITS NETWORK OF PIPELINES, IT HELPS REDUCE SHOCKS TO THE MARKET. UH, FOR EXAMPLE, SEVERAL YEARS AGO, UH, POLAR VORTEX HIT THE MIDWEST AND THIS BROUGHT FREEZING TEMPERATURES. SO DEMAND DRASTICALLY INCREASED IN THE AREA, WHICH CAUSED PRICES TO RISE TO ABOUT 20 TO $25 A DECK OF THE FOR GAS. AND TO PUT THAT INTO CONTEXT, [6. 26-56289 Recommendation to receive and file September 17, 2026 Communications Committee Report.       Suggested Action: Approve recommendation. ] GAS UG HOVERS AROUND THREE OR $4. GAS PRICE WILL INCREASE IN THE MIDWEST. UM, TO TAKE ADVANTAGE OF THE HIGH PRICES, MARKETERS BEGAN SHIPPING WHATEVER THEY COULD TO THE MIDWEST, UH, TO TAKE ADVANTAGE OF THE HIGH GAS PRICES. WELL, SHIPPING GAS TO THE MIDWEST, REDUCED SUPPLY TO THE REST OF THE COUNTRY, UH, INCLUDING CALIFORNIA. SO THE LACK OF SUPPLY TO OTHER PARTS OF THE COUNTRY MAY PRICES RISE IN OTHER PLACES SUCH AS CALIFORNIA. SO, UH, THIS NETWORK OF PIPES KIND OF HAS AN EQUILIBRIUM EFFECT ON THE GAS MARKET, UM, WHERE PRICES RISE A O AND UP RISING IN ANOTHER AREA. UM, NOW THIS IS WHERE CALIFORNIA HAS ITS OWN ISSUES. UM, I CALL CALIFORNIA LIKE AN ISLAND. SO YOU CAN SEE EAST OF THE ROCKIES, THERE'S A WHOLE NETWORK OF PIPES, BUT THEN WEST OF THE ROCKIES, THERE'S JUST A FEW PIPELINES THAT FEED THE CALIFORNIA MARKET. SO IF ONE OF THOSE PIPELINES GO DOWN, SUPPLY IS DRASTICALLY REDUCED TO THE STATE. UH, THIS IS WHAT HAPPENED DURING THE PRICE SPIKE OF THE WINTER OF 2023, THERE WAS AN EXPLOSION ON PIPE IN ARIZONA, AND IT WAS ON ONE OF THE PIPES THAT FEEDS CALIFORNIA. THIS CAUSED SUPPLY TO BE DRASTICALLY REDUCED, WHICH CAUSED PRICES TO SPIKE. NOW, MARKETERS WOULD'VE LOVED SENDING THEIR GAS TO CALIFORNIA TO TAKE ADVANTAGE OF THE HIGH PRICES, BUT BECAUSE WE'RE ONLY FED BY A HANDFUL OF PIPELINES, THERE WERE FEW ALTERNATIVE ROUTES TO GET GAS INTO THE STATE, AND THAT'S WHY PRICES REMAIN SO HIGH FOR SO LONG. NOW, HOW DOES GAS REACH LONG BEACH? UH, REACH LONG BEACH TO THE SOCAL GAS SYSTEM. AFTER GAS TRAVELS THROUGH THE INTERSTATE PIPELINE SYSTEM, IT ENTERS THE SOCAL GAS SYSTEM THROUGH RECEIPT POINTS. THESE ARE THE POINTS WHERE THE INTERSTATE PIPELINES PHYSICALLY CONNECT TO THE SOCAL GAS SYSTEM. AS A GAS ENTERS THESE RECEIPT POINTS, THIS IS WHERE LONG BEACH ACTUALLY TAKES OWNERSHIP OF THE GAS. SOCAL GAS DOESN'T JUST LET PEOPLE PUMP GAS INTO THEIR SYSTEM. YOU NEED TO RESERVE RIGHTS ON THEIR PIPES. UH, LONG BEACH ENTERS INTO THREE YEAR CONTRACTS WITH SO-CALLED GAS WITH LONG BEACH DETERMINING WHERE THEY WANT THE GAS TO COME IN AND THE VOLUME OF GAS. THE KEY ASPECT OF CHOOSING WHICH RECEIPT POINT TO RECEIVE THE GAS IS RELIABILITY. UM, IF ONE OF THESE POINTS GO DOWN, WE WOULD NEED TO REROUTE THE GAS TO A DIFFERENT POINT, WHICH ADDS COSTS. UM, COSTS AREN'T DRAMATIC, BUT IT DOES CAUSE CUSTOMERS BILLS TO GO UP A LITTLE MORE. WE CURRENTLY HOLD CAPACITY AT BERG AND NEEDLES. SO IF YOU EVER DRIVING IN THE MIDDLE OF NOWHERE AND YOU COME ACROSS SIGNS FOR NEIL BERG, YOU CAN TURN TO THE PERSON NEXT TO YOU AND GO LIKE, HEY, THAT'S WHERE LONG BEACH GETS ARE GAS, WHICH I USED TO DO THAT WITH THE WIFE, AND SHE SURPRISINGLY DIDN'T CARE . SO CURRENTLY, UM, THERE ARE FIVE, [00:30:01] UH, SUPPLIERS DELIVERING GAS INTO THE SOCAL GAS SYSTEM FOR ULTIMATE DELIVERY INTO THE LONG BEACH SYSTEM. OFF TO THE RIGHT AND THE BLUE, YOU CAN SEE SHELL AND MERRILL LYNCH. THESE ARE THE COMPANIES DELIVERING GAS FOR OUR CORE CUSTOMERS CONSUMPTION. AND THEN OFF TO THE LEFT AND THE GREEN, YOU CAN SEE CONSTELLATION, NRG AND CALIFORNIA RESOURCES CORPORATION. OUR VERY LARGE CUSTOMERS ARE GIVEN THE CHOICE OF PURCHASING THEIR GAS SUPPLY FROM THE CITY OR FROM AN OUTSIDE SUPPLIER. THOSE IN THE GREEN, THESE MARKETERS DELIVER THROUGH THE SOAK GAS SYSTEM, OR SPECIFIC CUSTOMERS LOCATED IN LONG BEACH. AND AT THE BOTTOM THERE IN THE BLACK, THESE ARE LOCAL PRODUCERS. WE HAVE THUMBS, I CALL THEM THE OIL ISLAND GROUP, UH, SIGNAL HILL PETROLEUM, HAMPTON OIL AND BEACH OIL. THESE LOCAL PRODUCERS CAN HAVE A DRAMATIC EFFECT OF WHAT'S COMING IN THROUGH THE SOCAL GAS SYSTEM. SO THE MORE THEY [7. 26-56290 Recommendation to receive and file the General Manager’s Report.       Suggested Action: Approve recommendation. ] DELIVER DIRECTLY INTO OUR SYSTEM, THE LESS WE NEED TO PULL OFF THE SOCAL GAS SYSTEM. AND TO GIVE AN EXAMPLE, THUMBS AGAIN, THE OIL IRON PEOPLE, UM, THEY CAN DELIVER ENOUGH GAS TO MEET ABOUT A HUNDRED PERCENT OF OUR DEMAND ON HOT SUMMER DAYS. THIS MEANS WE WOULDN'T NEED ANY GAS COMING THROUGH THE SOCAL GAS SYSTEM IF THEY WERE TO DELIVER THEIR FULL AMOUNT. AND ON A SIDE NOTE, WE'RE WORKING ON ENTERING INTO A CONTRACT, UH, WITH THUMBS TO, TO DELIVER OR POSSIBLY DELIVER. THERE'S AN EMERGENCY DURING THE 2028 OLYMPICS IF SOMETHING WERE TO HAPPEN AND SO-CALLED GAS WASN'T ABLE TO DELIVER GAS INTO THE LONG BEACH. THUMBS HAS THE ABILITY TO SUPPLY THE CITY WITH ENOUGH GAS TO MAKE IT THROUGH THE OLYMPICS. TRANSPORTING GAS THROUGH THE SO CLOUD GAS SYSTEM DOES INCUR A COST. LONG BEACH DOES HAVE TO PAY FOR BOTH THE TRANSMISSION OF GAS THROUGH THEIR SYSTEM AND THE RESERVE CAPACITY ON THEIR RECEIPT POINTS, WHICH I JUST TALKED ABOUT. UH, COSTS ARE DETERMINED BY RATES CHARGING THEIR TARIFFS, WHICH ARE APPROVED BY THE CALIFORNIA PUBLIC UTILITIES COMMISSION, LONG BEACH CONTRACTS AND SO-CALLED GAS RESTORE SERVICES. THESE CONTRAST CONTRACTS SET A TOTAL AMOUNT OF GAS WE CAN STORE, ALONG WITH THE AMOUNT WE CAN INJECT AND WITHDRAW ON A DAILY BASIS. THE OVERALL AMOUNT, OVERALL AMOUNT OF GAS WE CAN STORE COVERS ABOUT TWO TO THREE DURING THE, AND ABOUT FOUR WEEKS DURING THE SUMMER. STORAGE HELPS PROTECT CUSTOMERS IN TWO WAYS. IF SOMETHING WERE TO HAPPEN TO INTERSTATE PIPES FEEDING, UH, CALIFORNIA, WE HAVE A RELIABLE SOURCE OF GAS CHEAP STORAGE GAS THAT'S ALREADY IN THE SO-CALLED GAS SYSTEM THAT WE CAN DELIVER INTO, INTO LONG BEACH. STORAGE ALSO HELPS PROTECT CUSTOMERS IF PRICES RISE. GOING BACK TO THE POLAR VORTEX EXAMPLE, PRICES CLIMBED IN CALIFORNIA DURING THAT TIME. WE AVOIDED HAVING TO PAY HIGH PRICE FOR GAS TO MEET DEMAND DURING THIS TIME BY WITHDRAWING FROM LOW COST STORAGE. AND THE OPPOSITE IS TRUE. IF SUPPLY IS EXCEEDING DEMAND, WE CAN INJECT GAS INTO STORAGE INSTEAD OF HAVING TO POSSIBLY SELL AT A POSSIBLE LOSS. OVERALL, THE STRATEGY IS TO INJECT GAS WHEN PRICES ARE LOW AND WITHDRAW GAS WHEN PRICES ARE HIGH. NOT AS LONG BEACH UTILITIES MANAGE GAS ON A DAILY BASIS. WELL, THERE'S THE SO-CALLED GAS PORTION OF IT. UH, THEY PROVIDE TRANSMISSION SERVICES. THEY OPERATE STORAGE FACILITIES, ADMINISTER BALANCING REQUIREMENTS I'LL TALK ABOUT IN A MINUTE. THEY MANAGE PIPELINE CONSTRAINTS AND OPERATING ORDERS, AND THEY SET REGULATED TRANS TRANSPORTATION AND STORAGE CHARGES. AND FOR LONG BEACH'S PORTION, WE FORECAST CUSTOMER DEMAND AND SUPPLY. UH, WE PURCHASE THE NATURAL GAS COMMODITY. WE MANAGE SUPPLY CONTRACTS AND PRICE EXPOSURE. WE NOMINATE SUPPLY AND MONITOR AND BALANCES, AND WE OPERATE, OF COURSE, THE LONG BEACH PIPELINE SYSTEM. NOW THERE'S FOUR PROCESSES TO THE GAS PROCUREMENT PROCESS. UH, THE FIRST ONE IS FORECAST. WE NEED TO FORECAST SUPPLY AND DEMAND. WE NEED TO DETERMINE WHERE TO DELIVER. AND THAT GOES BACK TO THE RECEIPT POINTS THAT I TALKED ABOUT. UH, WE THEN COMPARE, UH, POSSIBLE PRICES OF BUYING ON THE MARKET OR WITHDRAWING FROM STORAGE, AND THEN WE ULTIMATELY MAKE THE DECISION WHETHER WE WANNA BUY OR WITHDRAW GAS FROM STORAGE. THIS IS THE SAME SLIDE AS YOU SEE BEFORE, BUT IT WORKS FOR THIS. UH, THE FIRST STEP IS FORECASTING. WE FIRST NEED TO FIGURE OUT THE VOLUME OF GAS BEING DELIVERED ON A DAILY BASIS BASIS. SOCAL GAS HAS BALANCING REQUIREMENTS. [00:35:01] THEY CAN ASSESS PENALTIES IF LONG BEACH HAS TOO MUCH OR TOO LITTLE GAS BEING DELIVERED RELATIVE TO DEMAND. SO WE FIRST BEGIN BY DETERMINING THE AMOUNT OF SUPPLY BEING DELIVERED. THERE ARE THESE FIVE SUPPLIERS THAT DELIVER GAS THROUGH THE SOCAL GAS SYSTEM, SO WE DETERMINE HOW MUCH GAS THEY'RE DELIVERING. SECOND, WE LOOKED AT WHAT'S COMING IN FROM THE LOCAL PRODUCERS. WE CALCULATE THE TOTAL AMOUNT OF GAS BEING DELIVERED INTO OUR SYSTEM. AND OF COURSE, LIKE I I SAID BEFORE, THE MORE THE LOCAL PRODUCERS DELIVER, THE LESS WE NEED TO HAVE COMING IN FROM SOCAL GAS. NEXT, WE NEED TO FORECAST DEMAND, UH, BECAUSE MOST OF LONG BEACH'S CUSTOMER LOAD IS DELIVERED TO RESIDENTIAL AND SMALL COMMERCIAL WEATHER PLAYS A HUGE ROLE IN DEMAND. WE LITERALLY USE TWICE AS MUCH GAS DURING THE WINTER THAN WE DO DURING THE SUMMER. OTHER FACTORS ALSO PLAY A ROLE SUCH AS THE CLOSURE OF THE SURF PLANT, WHICH REDUCE THE CITY'S OVERALL DEMAND. BUT FIRST AND FOREMOST, WE NEED TO LOOK AT THE WEATHER CONDITIONS. IT'S KIND OF OBVIOUS THAT IF THERE'S A COOLING PERIOD, WE'LL NEED TO BUY MORE GAS. AND IF THERE'S A WARMING PERIOD, WE'LL NEED TO BUY LESS GAS. WE LOOK AT OUR HISTORIC USAGE ON DAYS WITH SIMILAR TEMPERATURES WHILE TAKING ACCOUNT THE TIME OF YEAR. WE ALSO LOOK AT CONSUMPTION PATTERNS OF OUR LARGEST CUSTOMERS. UH, FOR EXAMPLE, ON THE HOLIDAYS, MANY OF OUR LARGE CUSTOMERS ARE CLOSED, WHICH CAN HAVE A DRASTIC IMPACT ON THE TOTAL DEMAND. AND THEN WE NEED TO FIGURE OUT WHERE TO DELIVER. UM, AND THIS HAS A DIRECT IMPACT ON THE PRICE WE PAY. FOR EXAMPLE, IF ONE OF OUR RECEIPT POINTS IS DOWN DUE TO MAINTENANCE, YOU KNOW, IT WOULD BE POINTLESS TO BUY GAS, IT BE DELIVERED AT THAT POINT. UM, SO IF WE BUY GAS, IT WOULD NEED TO GO TO AN ALTERNATE POINT, UH, WHICH HAS ITS OWN COSTS. UM, WE THEN LOOK IF WE HAVE EXCESS RECEIPT POINT CAPACITY ON THESE PIPES ABOVE THE PREPAID VOLUMES, AND IF WE DO, UH, WE CAN USE THOSE RIGHTS AND WE CAN AVOID SOME OF THE COSTS WE WOULD GET IF WE WERE TO BUY FROM A DIFFERENT SPOT. UH, WE ASK MARKETERS FOR PRICING ON THE, ON A CERTAIN VOLUME IN A PARTICULAR SPOT WHERE WE WANT THE GAS DELIVERED. WE ALSO LOOK AT THE PRICE AND VOLUME OF STORAGE GAS WE HAVE AVAILABLE IN THIS CHART, UH, HERE JUST KIND OF SHOWS THE VOLATILITY OF THE GAS MARKET. AND FINALLY, WE COMPARE, UH, THE QUOTES WE RECEIVED TO PURCHASE ADDITIONAL GAS TO MEET DEMAND. UH, WE COMPARE THAT TO THE COMMODITY RATE. WE'RE CHARGING CUSTOMERS FIRST MONTH INDEX PRICES, WHICH IS BASICALLY WHAT WE'RE PAYING MERRILL LYNCH FOR THE PREPAY GAS AND THE PRICE AND VOLUME OF OUR STORAGE GAS. WE ENSURE THAT THE RECEIPT POINT IS AVAILABLE AND ADDS RELIABLE AND ABLE TO RECEIVE GAS. AND IF PRICES COME DOWN, IT WOULD MAKE SENSE TO PURCHASE ON THE OPEN MARKET. BUT IF THAT PRICES INCREASE, WITHDRAWING GAS FROM STORAGE MAY BE THE BEST, MOST BENEFICIAL TO CUSTOMERS. CUSTOMERS. THIS IS DONE EVERY DAY FOR 365 DAYS A YEAR. AND THEN FINALLY THE NEXT, THE FOLLOWING DAY, WE HAVE THE ABILITY TO CHECK THE SUPPLY THAT WAS DELIVERED AND COMPARE IT TO DEMAND TO MAKE SURE THAT THERE WERE NO ISSUES. AND I'M GONNA TURN IT OVER TO TONY TO DISCUSS THE DIFFERENCES BETWEEN GAS AND WATER PLANNING. ALRIGHT, I'M GONNA TAKE US HOME HERE. GOOD MORNING, CHAIR CORDERO, SECRETARY AUSTIN. ON THIS FINAL SLIDE, I WILL HIGHLIGHT THE DIFFERENCES BETWEEN NATURAL GAS AND WATER FORECASTING AND SUMMARIZE. ATTEMPT TO SUMMARIZE IS DENNIS'S EXCELLENT PRESENTATION, SO BOTH GAS AND WATER, [ANNOUNCEMENTS] THE RESOURCE PLANNING INVOLVED WITH THEM AIM TO PROVIDE RELIABLE, AFFORDABLE SERVICE. AT ITS ESSENCE, NATURAL GAS FORECASTING REQUIRES DAILY COORDINATION BETWEEN CUSTOMER DEMAND, CUSTOMER DEMAND, COMMODITY PURCHASES, TRANSPORTATION AND STORAGE. THESE FOUR COMPONENTS WHICH ILLUSTRATED HERE, STARTING WITH THE UPPER LEFT FORECAST DEMAND, OR WHAT [PUBLIC COMMENT] GOES INTO AT A HIGH LEVEL, ARE GAS PROCUREMENT PLANNING. [00:40:02] FIRST STAFF FORECAST IS CUSTOMER USE BY EVALUATING WEATHER, HISTORICAL CONSUMPTION, INCLUDING MAXIMUM [CLOSED SESSION] AND MINIMUM PERIODS, SEASONAL PATTERNS AND CUSTOMER ACTIVITY. CUSTOMER ACTIVITIES INCLUDES SHIFTS [ADJOURNMENT] TO ALTERNATING ALTERNATE ENERGY SOURCES, PARTICULARLY ELECTRIFICATION. TEMPERATURE CHANGES DIRECTLY AFFECT SUPPLY NEEDS. AS DENNIS EXPLAINED, COLDER CONDITIONS INCREASE HEATING DEMAND OR WARMER CONDITIONS CAN REDUCE CONSUMPTION, MAKING WEATHER AND IMPORTANT FORECASTING INPUT. NEXT, MOVING ON TO ADJUST PURCHASES. STAFF ADJUST PURCHASES BY COMPARING FORECAST DEMAND WITH CONTRACTED SUPPLY, PRIMARILY THE AFOREMENTIONED MERRILL LYNCH PREP PRAY CONTRACT, AND THE LOCAL PRODUCERS, WE DETERMINE WHETHER TO PURCHASE ADDITIONAL GAS USE STORAGE, OR MANAGE AN EXPECTED SURPLUS. THESE DECISIONS REQUIRE CONTINUOUS REVIEW AS WHETHER AND OPERATING CONDITIONS CHANGE. THIRD, THE LOWER RIGHT STAFF MUST ENSURE PURCHASE GAS REACHES LONG BEACH THROUGH INTERSTATE PIPELINES TO THE CALIFORNIA BORDER. THEN THROUGH THE INTERSTATE SOCAL GAS SYSTEM, WE EVALUATE RECEIPT POINTS, TRANSPORTATION CAPACITY, MAINTENANCE SCHEDULES, AND UNEXPECTED PIPELINE RESTRICTIONS. A FAVORABLE PURCHASE PRICE HAS LIMITED VALUE IF THE DELIVERY ROUTE CANNOT ACCOMMODATE THE GAS. MOVING ON TO STORAGE, STORAGE PROVIDES SUPPLY AND OPERATING FLEXIBILITY. LONG BEACH CAN INJECT GAS WHEN PURCHASING CONDITIONS ARE FAVORABLE AND WITHDRAW IT AND MEETING DEMAND, UH, TO MEET DEMAND OR AVOID MORE EXPENSIVE PURCHASES. STORED INVENTORY AND DAILY WITHDRAWAL CAPABILITY REQUIRES SEPARATE EVALUATION. STAFF MUST CONSIDER INVENTORY LEVELS CONTRACTUAL CAPACITY, RIGHTS, AND PIPELINE OPERATING CONDITIONS BEFORE RELYING ON STORAGE. THESE DECISIONS SUPPORT BALANCING, WHICH IS KEEPING SCHEDULE SUPPLY ALIGNED WITH CUSTOMER CONSUMPTION. WITHIN OPERATIONAL REQUIREMENTS, DEMAND CHANGES MAY REQUIRE ADJUSTMENTS TO PURCHASES, DELIVERY NOMINATIONS OR STORAGE ACTIVITY. FORECASTING THEREFORE GUIDES DAILY TRANSACTIONS, DELIVERY ARRANGEMENTS, AND LONGER TERM DECISIONS. AFFORDABILITY REQUIRES EVALUATING COMMODITY PRICES ALONGSIDE TRANSPORTATION AND STORAGE CHARGES. STAFF COMPARES SOURCES BASED ON COST AND RELIABILITY. LONGER TERM PLANNING CONSIDERS EFFICIENCY, ELECTRIFICATION AND CHANGING CUSTOMER USE. JUST TO TOUCH ON WATER PLANNING, WATER PLANNING SHARES THESE OBJECTIVES, EMPHASIZING GROUNDWATER AND IMPORTED SUPPLY AVAILABILITY, RELATIVE COSTS AND INVESTMENTS IN WELLS PUMPING AND TREATMENT FACILITIES FOR LONG BEACH GAS RESOURCE PLANNING MUST CONNECT THE LONGER TERM OUTLOOK WITH DAILY OPERATIONS, FORECAST GUIDE PURCHASES, DELIVERY STORAGE USE, AND THE CAPACITY WE RETAIN, UH, TO SERVE CUSTOMERS RELIABILITY AND AT A REASONABLE COST. FINALLY, THIS PRESENTATION BEGINS AS DEAN MENTIONED, A SERIES HIGHLIGHTING NATURAL GAS PROCUREMENT, FORECASTING, RATE SETTING, RISK MITIGATION, LEGISLATIVE AND REGULATORY MATTERS, AND OTHER ASPECTS OF GAS UTILITY OPERATIONS. WE LOOK FORWARD TO THESE DISCUSSIONS AND THE BOARD AND THE BOARD'S GUIDANCE AS OUR INTEGRATION EVOLVES. SO THIS CONCLUDES OUR REPORT AND WE ARE HAPPY TO AVAIL, UH, ANSWER ANY QUESTIONS. THANK YOU. THANK YOU VERY MUCH. UM, DENNIS AND TONY, GREATLY APPRECIATE THAT. UM, DO WE HAVE ANY PUBLIC COMMENTS, ANY COMMISSIONER COMMENTS, SHARE? SURE. UM, YEAH, WE'VE GOTTEN A LOT OF GREAT INFORMATION TODAY, UM, AND THE PRESENTATION WAS VERY COMPREHENSIVE. I I DID HAVE A A JUST A COUPLE OF FOLLOW UP QUESTIONS. DENNIS, YOU, YOU SHOWED THE KIND OF MAP WITH THE PIPELINES AND YOU GAVE ARIZONA AS A, THERE, THERE WAS A DISRUPTION, HOW IT RAISED PRICES. UM, UH, SO, SO, BUT THERE'S, THERE'S IS IS PROXIMITY OF WHERE OUR SUPPLY COMES FROM. DOES THAT IMPACT THE COST? NOT NECESSARILY. UM, WHAT WOULD IMPACT THE COST IS THE RECEIPT POINTS. UM, AND THERE'S PIPES COMING DOWN THE PG E TERRITORY, SO THE, THESE WOULD BE MORE EXPENSIVE 'CAUSE THE FIRST NEEDS TO GO THROUGH PG E AND THEIR CUSTOMERS USE THE GAS. SO THERE IS AN IMPACT WHERE [00:45:01] THE GAS IS DELIVERED, BUT IT DOESN'T NECESSARILY, WE DON'T NECESSARILY NEED THE CLOSEST POINT TO GET THE GAS INTO OUR SYSTEM, AND THAT DOESN'T REALLY AFFECT THE COST. OKAY. IT'S JUST WE PAY ONE TRANSMISSION RATE NO MATTER WHAT DISTANCE THE GAS IS TRAVELING. AND SO WE PAY THE TRANSMISSION RATE TO SOCAL GAS. CORRECT. UM, BUT WE DON'T NECESSARILY BUY THE GAS FROM SOCAL GAS. NO, WE DON'T. OKAY. WE JUST USE OUR SYSTEM. SO THE OTHER MAP WHERE YOU SHOWED ALL OF THE DIFFERENT SUPPLIERS, OR THE SLIDE WHERE YOU SHOWED ALL THE DIFFERENT SUPPLIERS. WE BUY GAS DIRECTLY FROM THEM. WE BUY GAS DIRECTLY FROM SHELL AND MERRILL LYNCH. MERRILL LYNCH IS THE PREPAID SHELL IS ONE OF THE VENDORS WE USE TO PURCHASE ADDITIONAL GAS. UH, LIKE I SAID, UH, WE HAVE VERY LARGE CUSTOMERS THAT USE A TON OF GAS. OKAY. UH, WE LET THEM, IF THEY WANT, THEY CAN BUY GAS FROM AN OUTSIDE SUPPLIER OR THEY CAN BUY GAS FROM THE CITY. IT'S A LOT LIKE US WITH SOCAL GAS. UH, WE'RE BUYING GAS FROM AN OUTSIDE SUPPLIER AND USING THEIR SYSTEM TO DELIVER IT. THESE GUYS ARE KIND OF DOING THE SAME THING, BUT WITH LONG BEACH. SO THEY'RE PAYING OUR TRANSMISSION RATES. YOU GET GAS INTO THE CITY OF LONG BEACH. THAT MAKES SENSE. A LITTLE BIT. OKAY. SO SOCAL GAS AND LONG BEACH UTILITIES HAVE THE SAME FUNCTION IN TERMS OF SUPPLYING GAS TO CUSTOMERS AT THE SAME TIME TOO, RIGHT? RIGHT. YEAH, IT'S, IT IS ALMOST THE SAME THING. UH, THEY'RE JUST LIKE OUR, I CALL 'EM OUR BIG BROTHER BECAUSE THEY'RE JUST SO MUCH LARGER. BUT IT'S THE SAME THING. IT'S SORT OF LIKE, UM, YOU KNOW, LONG BEACH, WE WOULD'VE THE OPTION TO BUY THE GAS FROM SOCAL GAS IF WE WANTED TO, BUT IT'S CHEAPER AND IT'S BETTER IF WE BOUGHT FROM AN OUTSIDE SUPPLIER AND JUST USE THEIR SYSTEM TO DELIVER THE SOCAL GAS. THESE GUYS ARE THE SAME THING. THEY CUSTOMERS IN LONG BEACH, THEY, UM, ARE BUYING FROM AN OUTSIDE SUPPLIER, JUST LIKE WE'RE BUYING FROM AN OUTSIDE SUPPLIER. AND SO THE COMMODITY PORTION, LIKE, UM, BIG ENERGY, THEY SUPPLY MEMORIAL HOSPITAL. SO MEMORIAL HOSPITAL PAYS NRG FOR THE COMMODITY ITSELF. MEMORIAL HOSPITAL PAYS US TRANSMISSION TO GET THE GAS TO THE HOSPITAL. YEAH. KIND OF CLEAR HIS MIND. I ASK TO DESCRIBE WHO THESE TRANSPORT CUSTOMERS ARE. UH, IT'S A VERY PARTICULAR GROUP THAT USE CONSTELLATION ENERGY, UH, TO BRING GAS INTO LONG BEACH, BUT THEY'RE ESSENTIALLY TRANSPORT CUSTOMERS AND DENTISTS WILL DESCRIBE WHO THEY'RE RIGHT. UM, LIKE I SAID, NRG, I'M JUST GONNA USE MEMORIAL HOSPITAL. OKAY. UM, YOU KNOW, THEY ALSO SUPPLY ST. MARY'S HOSPITAL TOO, SO THEY'RE VERY LARGE USERS. UM, SO THESE CUSTOMERS IN LONG BEACH, LIKE MEMORIAL HOSPITAL, THEY BUY THE COMMODITY FROM CONS OR FROM NRG. OKAY. THINK OF LONG BEACH AS MEMORIAL AS LIKE MEMORIAL HOSPITAL. WE HAVE DEMAND AND WE'RE BUYING GAS FROM AN OUTSIDE SUPPLIER AND DELIVERING IT THROUGH SOCAL GAS. AND SOCAL GAS IS A PRIVATE UTILITY? IT'S A PRIVATE UTILITY. YES. ITS RIGHTS TO THAT ALL PUBLIC AGENCIES HAVE TO UTILIZE YES, THE PIPELINE DROP THE MIC. IT'S COOL. OH. UH, WE HAVE A TOTAL OF SEVEN TRANSPORT CUSTOMERS. UM, EACH ONE HAS BASICALLY THEIR OWN SUPPORT. THEY LIKE, UM, WE HAVE SOME FUEL CELLS, UM, AT HOME DEPOT SALE AT HOME DEPOT STORES. OKAY. WHAT THEY DO IS THEY GENERATE ELECTRICITY FOR THE HOME DEPOT STORES THROUGH NATURAL GAS. SO THEY BUY FROM CONSTELLATION WHO THEN DELIVERS THE GAS FOR USE AT THESE HOME DEPOT STORES. UM, LIKE, AGAIN, LONG BEACH IS LIKE A HOPE DEPOT STORE. WE'RE ONE, WE'RE BASICALLY CONSIDERED LIKE ONE CUSTOMER, JUST THE CITY OF LONG BEACH, AND WE'RE BUYING FROM AN OUTSIDE SUPPLIER LIKE MERRILL LYNCH, AND THEY'RE DELIVERING IT TO LONG BEACH AS WE'RE ONE CUSTOMER. IT WOULD BE THE SAME THING FOR THESE THREE GUYS. THEY EACH HAVE SPECIFIC CUSTOMERS ON THEIR OWN THAT THEY DELIVER INTO THE LONG BEACH SYSTEM, OR USE ONLY WITH THESE SPECIFIC CUSTOMERS. THEY DON'T SUPPLY ANY OF THE OTHER CITY THINGS. UM, [00:50:02] MEMORIAL HOSPITAL USES A THOUSAND DECATHERM A DAY. THESE GUYS DELIVER A THOUSAND DECATHERM A DAY, SO, OKAY. NO. YEAH. UH, YOU'RE DOING A GREAT JOB. UH, TRANSPORT CUSTOMERS, THERE'S ONLY SEVEN OF THEM, AND THAT'S WHAT USES THOSE GREEN CIRCLED ONE TO YOUR EARLIER QUESTION. WE IN FACT ARE A CUSTOMER OF SOCAL GAS. EVEN THOUGH WE ARE PERFORMING SIMILAR SERVICES, WE ARE A CUSTOMER OF SOCAL GAS. WE'RE SIMILAR TO A TRANSPORT CUSTOMER WHERE WE JUST USE THEIR SYSTEM TO GET THE GAS THAT WE BUY OURSELVES. I'M CLEAR. YEAH. AND, AND AGAIN, THANK YOU. THERE'S A LOT OF INFORMATION TO IMPART, UM, UM, PART, YOU KNOW, UM, THIS, THIS IS, THIS IS VERY, VERY, VERY INFORMATIVE. THANK YOU. THANK YOU FOR THOSE GOOD QUESTIONS. ARE, I'M ASSUMING THIS WILL GO TO THE FULL BOARD AT SOME POINT. IT, IT CAN. I THINK IT, I THINK IT SHOULD. WE'LL, WE'LL TALK ABOUT THAT, BUT THANK YOU. UM, THIS HAS BEEN AMAZING. MY QUESTION HAS TO DO ABOUT STORAGE. WHEN YOU LOOK AT LIKE BLYTHE AND OTE MESA, UM, THAT'S NOT JUST OUR STORAGE OR IS DO OR DO WE PUT IT IN LIKE COLORADO RIVER, WE HAVE SOME WATER IN THERE AND THEN, YOU KNOW, OR IS IT JUST SPECIFICALLY OUR STORAGE? OH, NO, THIS IS, UH, CONTRACTED GATHERS, UH, CONTRACTED STORAGE THROUGH SOCAL GAS. OKAY. THEY ARE ACTUALLY VC POINTS, BUT SOCAL GAS HAS FIVE STORAGE FACILITIES, UH, IN THEIR TERRITORY. UH, THE BIGGEST BEING ELIS CANYON, WHICH WAS THAT EXPLOSION OF YEARS AGO. UM, IT'S ALMOST ON PAPER. WE DON'T HAVE A SPECIFIC, THIS IS WHERE OUR GAS IS. IT'S JUST ON PAPER. THIS IS HOW MUCH WE HAVE IN THEIR STORAGE FACILITIES. OKAY, GREAT. AND THEN WE PAY, UM, IS IT, IS IT CALLED WHEELING? BECAUSE I KNOW IN, IN WATER IT'S CALLED WHEELING. DO WE PAY WHEELING COSTS TO HAVE IT DELIVERED BACK OUT TO US? NO. NO. UH, OUR STORAGE IS BASICALLY A SET COST. UH, THERE IS, IT ISN'T VOLUMETRIC. OKAY. BUT NOT VOLUMETRIC. OKAY. YOU SAID THAT. OKAY. THANK YOU VERY MUCH. I THINK THIS HAS BEEN INCREDIBLE AND THANK YOU SO MUCH DENNIS AND TONY. YOU BOTH DID AN INCREDIBLE JOB. AND I THINK THE FULL BOARD NEEDS TO HEAR THIS. I THINK THEY'VE REALLY LEARNED A LOT. AND AS WE HAVE RIGHT NOW, I THINK THE THING THAT IMPRESSED ME WHEN I WAS LOOKING AT THIS A COUPLE DAYS AGO WAS, I THINK IT WAS SLIDE EIGHT THAT SAID DAILY, DAILY, DAILY, DAILY, UH, THAT YOU HAVE TO MONITOR. THAT'S AMAZING TO ME THAT, UM, YOU HAVE TO BE ON TOP OF THAT, UM, EVERY SINGLE DAY AND, AND TRY TO BALANCE THE, THE NEEDS OF THIS COMMUNITY. SO THANK YOU FOR YOUR GOOD WORK. FIRST THING WHEN I COME IN THE BOOK. YEAH. , THANK YOU VERY MUCH. IT WAS AN EXCELLENT, EXCELLENT REPORT. YOU DID A GREAT JOB. THANK YOU VERY MUCH. UM, OKAY. SEEING NO FURTHER QUESTIONS AND NO PUBLIC COMMENT, UM, ALL THOSE IN FAVOR OF RECEIVING AND FILE THIS REPORT SIGNIFY BY SAYING AYE. ALL RIGHT. THANK YOU. UH, ANY OPPOSED? NO, THE MOTION CARRIES. THANK YOU VERY MUCH EVERYONE. UH, ANYONE WISHING TO SPEAK ON A NON AGENDA ITEM? OKAY. SEEING NONE, THE UH, PUBLIC COMMENT PERIOD IS CLOSED. ANY ANNOUNCEMENTS? ALL RIGHT. SEEING NONE, THIS MEETING IS ADJOURNED. THANK YOU EVERYONE. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.