Jason Ryan provided context about the temporary emergency generation assets installed to mitigate risks post-Winter Storm Uri and subsequent legislation in 2021 and 2023.
Large units primarily address the risk of load shedding, which disproportionately affects residential and small commercial customers in Houston due to the presence of large industrial consumers.
Houston requires importing 60% of its power due to insufficient local generation; large units help mitigate risks posed by potential disruptions in transmission lines (e.g., due to natural disasters).
These assets are seen as tools for various risks, with the necessity of maintaining a diverse and adequate fleet to handle different scenarios.
CenterPoint commits to better transparency and communication about risk assessments and the size of their fleet through periodic filings and possibly independent assessments.
There is ongoing evaluation of the affordability of these assets, with discussions on extending recovery periods to lower customer bills and re-assessing the need for these assets as new energy fund generators come online.
Open to discussing whether CenterPoint should continue mitigating these risks or if these responsibilities should be relocated.
CenterPoint intends to file periodic updates and engage in further discussions about the assets and their associated costs.
CenterPoint has made major changes in circuit segmentation and intelligent grid switching to improve load management.
During Winter Storm Uri, manual attempts to segment circuits were made but were hindered by road conditions.
Installation of intelligent grid switching devices has added approximately 400 MW of capacity for load rotation.
An upcoming circuit segmentation study for ERCOT aims to install around 40 more devices for further enhancement.
Current manual load rotation capability is about 3000 MW, leaving a 2000 MW deficit during Winter Storm Uri.
Post-Uri improvements include investments in distribution systems, weatherization, dual fuel capability, and overall winter reliability and resiliency.
There will be a re-analysis this year based on a new 19,000 MW benchmark.
Load ratio share changes yearly and large industrial loads may come on faster than before, adding uncertainty.
Calculations also consider factors like potential increases in wildfire risks, which could impact load shedding in the Houston area.
Ongoing evaluations are being made on the number of units needed and deployment speed, which may require process and staffing changes.
Past analyses will be provided to compare with current data to understand decision-making progress.
Evaluation criteria also include considerations for loss of major transmission lines into Houston in load shed analyses.
Commissioner Glotfelty had questions about the termination clause in Amendment 5 of a lease agreement.
Two different financial consequences were noted: a potential $53 million payment and a 25% of total cost ($125 million).
Clarification sought on the consequences of canceling the leases today.
Termination provision expired in March 2023 and extended till the end of 2023.
No live provision exists that allows termination based on the prudence determination; it was contingent on a commission determination not being appealed.
Only remaining termination option stems from vendor non-performance, which includes failure to provide 94% availability.
Commissioner Hjaltman inquired about the possibility of changing out various units for better performance.
It was confirmed that while the assets are tested and maintained for readiness, changing the assets requires mutual commercial agreement with the vendor.
Eric Easton described performance evaluations, including testing and deployment during Hurricane Beryl, affirming that proper procedures are in place for readiness.
Discussion on readying units which progressed to EEA level, addressing the potential need for load shed.
Confirmation that units were readied four times since the Uri event.
Consideration of future scenarios including Texas Energy Fund generation impacting asset management.
Acknowledgment of changes in load ratio share due to industrial and residential growth.
Impact of legislation on reliability and resiliency of grid infrastructure.
Request for a more transparent analysis of readiness and performance of units.
Need to assess practical and pragmatic ways forward given current lease contracts.
Concern about the cost and underutilization of mobile generation units.
Inquiry about market rate differences for SMT 60 generating units and specifics of the CNP contract.
Questions raised about the role and background of Goldfinch Energy in the contracts.
Discussion on managing risk in three distinct areas: ERCOT mandates, 60% power input to Houston, and risks associated with operating traditional facilities in Houston.
Emphasis on the importance of an independent assessment and study to ensure effective risk management.
Mention of electrification issue and disparity between residential customer growth and industrial load growth in Houston.
Concern on handling industrial load and its impact on residential customers if not included in the load ratio share.
Suggestion to explore options regarding lease termination and subleasing to present to the Commission and Legislature
52 - Project No. 56822 – Investigation of Emergency Preparedness and Response by Utilities in Houston and Surrounding Communities.
58 - Discussion and possible action regarding customer service issues, including but not limited to correspondence and complaint issues.
There were anomalies in customer usage data where usage was higher than expected, even when customers were out of service.
CenterPoint uses a model that examines customer usage over the past three months to create exceptions and verify billing usage.
They are actively fine-tuning this model to improve its accuracy and address anomalies, especially those caused by storms.
Communication with customers about these issues was discussed, and representatives were asked how they handle customer interactions regarding unusual bills.
Discussion of second rulemaking focused on individual customer communications during outages.
Frustrations noted from past events like Hurricane Beryl due to lack of reliable information for customers.
Proposal to change customer communication default from opt-in to opt-out.
Retail Electric Providers (REPs) will be required to share customer information with Transmission and Distribution Utilities (TDUs) for emergency contacts.
Emphasis on privacy and narrow use of customer information specifically for power outage status and restoration updates.
Request for comments from utilities and REPs, including descriptions of current communication capabilities.
Final objective is to adopt the best possible rule by ensuring all relevant facts are considered.
Commissioner Cobos recommends amending the proposal to require TDUs to provide affected customers with power outage information, estimated restoration times, and updates in both English and Spanish.
Flexibility is suggested for coordination between representatives (Reps) and TDUs to determine best practices for this bilingual communication.
Consumers often have a preferred language for communications, which should be respected.
Existing consumer protection rules already require Reps to communicate in the language in which the customer was enrolled.
Feedback is sought from retailers and customers on whether this bilingual practice should be extended.
Comments are welcome on the logistical capabilities of TDUs to implement this change.
Motion to approve proposals for publication in Project No. 56897 and 56898.
Motion made consistent with Commissioner Cobos memos and the discussion.
Motion carried unanimously.
Click here for the Grid Monitor Summary on the rest of this Open Meeting’s agenda items not related to CenterPoint Energy and Storm Response related items.