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  3. Power Supply Optimization

Employee Engagement & Development

Optimizing Water Supply

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Power Supply Optimization

Enterprise Risk Management

Technology Modernization

Resiliency & Reliability

Affordability

Interorganizational Effectiveness

Power Supply Optimization

SFA Definition

It is important for BPUB to optimize its generation mix, market participation, and long-term planning to enhance resilience, affordability, and sustainability.

Strategic Challenge

With aging generation assets, evolving market dynamics in ERCOT, and growing demand, including potential large industrial loads, BPUB must make critical decisions about infrastructure investments, ownership strategies, and participation models, while balancing risk, cost, and community expectations.

Video Overview

09

SSD-9

BPUB will build understanding in the community of its role, services, and the value of municipal ownership, while offering opportunities for involvement.

Initiative 17

BPUB will assess the feasibility, cost-effectiveness, and strategic value of new electric generation options—both self-owned and contracted—consistent with the 2025 Integrated Resource Plan (IRP) to enhance long-term capacity, grid resiliency, and rate stability for BPUB customers.

Initiative 18

BPUB will develop a plan for integrating DERs, DSM programs, and advanced technologies into its power supply planning and operations, to increase system flexibility, reliability, and customer participation.

Initiative 19

Municipal Natural Gas Utility Authority - BPUB will establish a Natural Gas Utility Planning Task Force, commission a comprehensive feasibility study to evaluate the viability, risks, and benefits of each strategic option, and conduct a comprehensive inventory mapping of Cross-Valley Pipeline easements.

Initiative 20

Municipal Natural Gas Utility Authority - BPUB will prepare preliminary regulatory filings and initiate consultations with the Railroad Commission of Texas, TCEQ, and PHMSA, and develop a legal framework for potential asset acquisition or transition from Texas Gas Service.

Initiative 21

Municipal Natural Gas Utility Authority - BPUB will commission engineering studies to evaluate infrastructure scenarios, including pipeline construction, industrial service connections, and alternative uses.

Initiative 22

BPUB will conduct stakeholder engagement, develop financial modeling for each strategic option, and explore funding mechanisms.

Initiative 23

Municipal Natural Gas Utility Authority - BPUB will publish a Strategic Readiness Report and develop a Decision Matrix to evaluate trade-offs among strategic options.

Initiative 24

BPUB will invest in GIS and asset management systems, staff training, and policy monitoring to support long-term readiness and ensure BPUB remains informed of regulatory and market developments.

10

SSD-10

BPUB will optimize electric and gas market participation strategies to mitigate volatility and enhance financial resilience, including the potential for transmission or retail service roles.

Initiative 25

BPUB will establish itself as an ERCOT Certified Level 1 Qualified Scheduling Entity (QSE), enabling BPUB to manage its energy, scheduling, dispatch, market settlements, and ERCOT compliance independently, enhancing operational flexibility and supporting market strategies such as DER and DSM.