Alan Hicks, along with neighbors from Windermere Oaks Water Supply Corporation, supports appointing a temporary manager for the water supply corporation.
Danny Flunker did not have a prepared statement but wanted to emphasize several points, with hopes for a decision granting the board no authority in the issue.
Jeff Walker - Windermere Oaks WSC Board Member & Attorney
Jeff Walker provided an update on revenue losses, with October losses amounting to $12,000. Confirmed organization struggles to sustain operations.
Carlos Rubinstein introduced himself as an advisor to Anser Advisory Services, highlighting his experience in managing troubled systems, primarily in Florida.
Anser Advisory Services currently manages over 70 communities, a budget of $100 million, and a CIP of $200 million, with extensive experience in managing systems transitioning to Water Supply Corporations.
Anser serves as a temporary manager for abandoned systems near Lubbock, Texas, and is in the process of converting these systems into Water Supply Corporations.
Funding has been allocated by the Water Development Board for repairing deficiencies in these systems once they become public subdivisions of the state.
Anser is aware of and prepared to address issues at Windermere Oaks WSC, having been informed and in contact with relevant stakeholders and documents.
Anser is prepared to work with the board to define the responsibilities for this unique case, emphasizing the importance of identifying root causes of deficiencies.
Carlos Rubinstein noted the difficulty in managing overlapping powers but affirmed readiness to collaborate for problem diagnosis and resolution.
Anser is prepared to file for temporary rates crucial for maintaining utilities' sustainability, consistent with previous actions taken in Lubbock.
Discussion was opened to Commissioners for any further questions or comments.
11 - Commissioner's Questions to Carlos Rubinstein
Carlos Rubinstein acknowledged the expertise of their advisory group in managing capital improvements and major projects efficiently.
The temporary manager's responsibilities include day-to-day operations and addressing customer complaints.
Rubinstein emphasized the importance of operational aspects and asset management for getting utilities to a sustainable position.
He shared past experience with similar cases, such as the La Joya Water Supply Corporation, to outline the approach to identifying corrective actions.
Rubinstein is confident in collaborating with leadership to set roles and responsibilities to achieve a successful outcome.
It was noted that serving two masters can lead to challenges, highlighting the need for a temporary manager to prioritize the utility's best interests.
The importance of making decisions that ensure clean water and wastewater services for consumers was stressed.
Rubinstein discussed past engagements with existing boards and emphasized the critical nature of understanding the entirety of the situation.
Anser, now part of Accenture, has local offices in Texas to effectively manage duties without relying on remote personnel.
Limited information related to recusals was acknowledged at the end of the discussion.
CenterPoint Energy Houston Electric, LLC submitted an application to amend its Certificate of Convenience and Necessity for a proposed 138-kV transmission line.
The proposed transmission line is planned for Harris and Montgomery Counties.
A SOAH proposal for decision PFD was presented.
Exceptions and replies to the PFD were filed.
The SOAH Administrative Law Judge declined to make changes to the PFD via a letter.
A Commission Counsel memo recommending a change to the final order was filed.
The discussion focused on the first system resiliency plan, SRP case brought before the commission under House Bill 2555.
Commissioner Cobos expressed encouragement over the strong collaboration and transparent process leading to a settlement agreement.
The settlement relied on expert consultants for historical and wildfire-specific analysis, supported by legal staff, consumer groups, and cities.
A significant investment in the SRP by Oncor is noted, amounting to approximately $3.3 billion.
The prudency of these investments will be reviewed once they are part of a historical test year.
Questions were raised about the self insurance reserve approved in the last rate case, and its potential impact on future resiliency investments.
Introduction of Oncor's representatives: Tab Urbantke (Outside Counsel), Ellen Buck (VP of Business Operations), Brian Lloyd (VP of Regulatory).
23 - Brian Lloyd - Oncor's VP of Regulatory Policy - Self Insurance Reserve
Brian Lloyd discussed Oncor's self insurance reserve covering excess liability and storm damage.
The self insurance reserve is composed of an amount included in base rates (approximately $122 million) to cover liabilities and storm damage.
Financial adjustments are made if actual storm damage costs exceed the set amount within the base rates, either adding to or crediting a deficit account.
Oncor's SRP plan aims to reduce storm costs through enhanced vegetation management and system strengthening, shifting management to a proactive approach.
Proactive vegetation management is expected to be more efficient and less costly than post-storm repairs.
Oncor is considering adjusting the annual accrual amount for self insurance based on actual experience and actuarial studies in the future.
Oncor is incorporating sectionalization in their systems, part of the current modern design standards, to enhance older system parts.
23 - Ellen Buck - Oncor's VP of Business Ops - Distribution System Measure
Discussion focused on the flexible and self-healing distribution system measure aimed at increasing sectionalization and operating flexibility.
Sectionalization involves creating additional ties between feeders from different substations for system recovery from outages and maintaining system integrity during remote de-energization.
Clarification was given on sectionalization as ability to take out a circuit to prevent wildfire spread.
Inquiry was made regarding the distinction between Vegetation Management efforts; $55 million was previously approved, and additional funds are being sought.
The discussion touched upon the previous rate case and the proposed spending in the System Restoration Plan, SRP.
23 - Brian Lloyd - Oncor - Vegetation Management Efforts
Focus of the VM program over the past 4-5 years has been on mainline feeders to reduce customer impact during outages.
The VM plus program now extends proactive management to laterals, using technology to target areas where vegetation grows fastest.
Accounting group distinguishes expenses clearly in terms of base rates and SRP, maintaining clarity on budget allocations.
Commitment to continue $55 million spending on the distribution system and maintain transmission system rates.
Emphasis on not reallocating VM dollars; the budget is incremental to previously approved amounts.
Potential utilization of federal or state funds for resiliency to lessen investment impacts on ratepayers.
Discussion on how resiliency investments might lead to lower insurance premiums in the future, considering national issues like wildfires.
Acknowledgment of increased insurance costs due to wildfires affecting financial integrity.
23 - Commissioner Jackson's Observation on Resiliency Plan
Commissioner Jackson emphasized the importance of impartial evaluation of the resiliency plan to ensure investments lead to desired outcomes.
Commended the engagement of staff and engineering teams in evaluating the plan and asking critical questions.
Encouraged review of available testimonies and noted that several recommendations align with infrastructure staff's insights.
Highlighted the goal of better performance through setting standards and allowing entities to determine their approach while ensuring continuous evaluation and improvement.
Recognized the success of Texas's unique regulatory oversight approach in driving performance and reliability.
Stressed the importance of entities understanding their responsibility to enhance resiliency and to audit and improve their methods continuously.
Expressed excitement about the initial plan and its potential to meet public expectations related to generation, resource mix, and systems resiliency.
Emphasized the ultimate goal of improving reliability smartly and cost-effectively.
Recognized the hard work and engagement of all staff and parties involved in developing this initial plan.
