Noted the importance of continuing infrastructure improvement and vegetation management to prepare for future storms.
Highlighted the significance of the PUCT as a regulatory body for Texans, especially for those who cannot afford rate increases.
Advocated for legislation to bolster the PUCT's powers to better save lives during crises.
Urged the continuation of efforts to address utility and infrastructure concerns while acknowledging the limitations of the PUCT's focus areas.
▶️ 5 - Docket No. 55959 – Joint Petition of Texas Energy Association for Marketers and Alliance for Retail Markets for Designation Under 16 TAC § 25.475(b)(5)
Commissioner Cobos filed a memo with a draft order on judicial notice.
The memo includes a request for judicial notice and a second revised proposed declaratory order.
The focus is on addressing the official notice first, consistent with the memo.
Commissioner Cobos recommends the Commission take official notice of facts, materials, records, and documents as per the draft order.
Cobos referenced Commission's Procedural Rule 16 TAC 22.222, subsection C.
There is a call for parties to state any objections to the judicial notice.
Involved parties are TEAM, ARM, OPUC, and Commission staff.
ERCOT is not including specific costs for the mobile generation solution in the RFP as they are still being finalized.
The market will compete with the mobile gen solution against the existing Braunig units one and two.
Costs for Braunig units one and two have been reported at $56 million based on data from CPS Energy.
ERCOT hopes the mobile gen solution will be less expensive and provide a more reliable solution than the Braunig units.
▶️ Jason Ryan - CenterPoint Executive VP - Mobile Gen units in San Antonio
Jason Ryan of CenterPoint Energy presented a proposal to utilize 15 large mobile generation units to address energy shortfall in San Antonio.
The units, currently in Houston, range from 27 MW to 32 MW each, totaling about 450 MW, sufficient for powering approximately 450,000 homes.
These units were leased from Life Cycle Power after Winter Storm Uri and are under lease until mid-2029.
A discount was negotiated by prepaying the lease in full upfront.
CenterPoint plans to relocate these units to San Antonio by Summer 2025, aiming to serve for about two years, or until ongoing transmission projects are completed.
During their service in San Antonio, CenterPoint will incur costs without revenue or profit from these units, and Houston customers will not bear any associated costs.
Post-2027, CenterPoint will relocate the units again, looking for other areas of need.
An initiative to reduce customer rates in Houston is planned after the units are approved to move by the ERCOT board and associated filings are completed.
This proposal serves as a local Texas solution in response to the energy needs caused by the retirement of Braunig units in San Antonio.
Stakeholder collaboration, including ERCOT's involvement, has been emphasized and appreciated in developing this solution.
Discussion about specific projects listed as "blue projects" and their requirement for TEF grants to be included in the plan.
Prioritization of projects is based on benefit and cost ratio.
Projects proposed for funding, regardless of TEF outcome, are those with the highest benefit to cost ratio (high value).
TEF funded projects are categorized as the next best projects following the highest value ones.
Some projects need to be grouped together for construction reasons, affecting their funding and prioritization.
Conditional funding is requested for some projects due to their grouping with other lower value projects despite not all having low benefit cost ratios.
▶️ Sean Meredith - Entergy VP of Project Delivery - Conditional Funding & Circuits
Discussed the advantages of grouping circuits together to achieve economies of scale and construction efficiencies.
Grouping circuits avoids the inefficiency of having crews mobilize over large distances.
GRIP funding is categorized separately for reasons other than benefit-to-cost ratio.
Projects under GRIP funding may have a low benefit-cost ratio, but are grouped for efficiency in the same circuit and region.
These projects are part of the community benefits plan and have been submitted to the Department of Energy.
The collective benefit-cost ratio of such projects is acknowledged to be low.
Discussion on the System Resiliency Plan rule allows utilities to update their plans at any time, but updates can't take effect until the third anniversary of the initial approval.
There are multiple avenues for utilities to seek funding for projects to improve system resiliency.
Assessment of whether a project should be conditioned on TEF funding or being included in the resiliency plan.
TEF rule considerations include an open-ended application period until funds are exhausted, with a proposed $200 million cap per entity.
Entities can potentially submit multiple funding applications within the budget cap.
Discussion on ensuring good resiliency projects, protecting TEF funds, and protecting ratepayers.
Promoting additional resiliency, modernization, weatherization, and vegetation management projects that exceed regular utility plans.
Guidance will be taken from the decision-making and direction provided.
Projects are sequenced to maximize impact based on available funding.
Reprioritization could occur if funding covers only part of a project.
There is an algorithm available to help reprioritize based on funding cutoffs.
This approach is similar to the one used in a previously approved plan from Oncor.
Resiliency plan projects might need reprioritization based on funding flow.
A disconnect exists between TEF grant funding processes and long waiting periods.
There's a need for a middle ground to ensure utilities make necessary coastal area investments.
▶️ George Hoyt – Project timeframes & broad scope of TEF funding
Efforts are being made to expedite projects once grant funding is secured.
Projects have been vetted and confirmed to be aligned with Commission's expectations.
A broad approach is taken in defining eligible projects for TEF funding, with resilience projects being a subset.
There is an emphasis on consistency in definitions and metrics across TEF and resilience plans.
Ongoing monitoring and reporting will be necessary for funded projects.
Conditional plan approval could ensure funds are well accounted for relative to grants received.
Annual reporting could provide insights into project prioritization and execution.
Phase one of the plan aims to cover a third of benefits with about one-tenth of the investment.
If grant funding is insufficient, those projects will not be part of an approved plan but may be pursued with available funds.
▶️George Hoyt – Purpose of projects in resiliency plan
The purpose of including projects in a resiliency plan is to have access to additional cost recovery mechanisms.
Projects included in the resiliency plan receive a public interest finding, similar to benefits from a CCN proceeding.
Public interest findings provide valuable direction for fund usage on Commission-approved projects.
TEF grant dollars are essential for initiating certain projects that otherwise would not occur or would be delayed.
There is an agreement that TEF funds should support projects that wouldn't otherwise be done.
Further discussion and feedback will take place over the next month, with plans to revisit the resiliency plan in the upcoming open meeting on the 16th.
▶️ 15 - Project No. 57152 – Identifying Transmission Service Providers for Implementing the Permian Basin Reliability Plan
ERCOT made a filing in response to Commissioner Hjaltman's request.
▶️ Kristi Hobbs - ERCOT - Update on work in Permian Basin
Recent filings and orders were noted, with responses from TSPs.
Initial disputes reduced from 14 to 6 after stakeholder engagement.
Guiding principles for stakeholders were outlined in a memo.
Meetings with TSPs scheduled for further discussions on sequencing work.
TSPs possess critical information on load due to customer communications.
Recommendation to prioritize 2030 load projects over 2038 load projects.
Priority suggested for import projects as they involve longer lines and essential regional power importation.
Focus on local projects with broader regional impacts to enhance reliability.
Discussions with Staff and Commission on handling expected CCN filings.
Request from Commissioner Hjaltman for Staff feedback on prioritization of import paths and possible support needed.
▶️John Harrison - Commission Staff - Comments on Permian Basin plan
John Harrison thanked ERCOT, TSPs, and others for their cooperation on the project.
ERCOT's guiding principles in their letter were generally agreed upon and seen as effective guidelines.
Emphasized the importance of developing a concrete sequencing plan for project approvals and construction.
Highlighted the need to identify which projects require a CCN amendment as it affects the timeline.
Recommended that TSPs file affirmations on whether a CCN amendment is needed for both undisputed and disputed projects.
Stressed continued cooperation with TSPs and ERCOT to finalize plans and sequencing order.
▶️Liz Jones - Oncor - Thoughts on Permian Basin plan
Liz Jones representing Oncor emphasized the importance of understanding the CCN population.
Requested for a firm deadline for providing additional information in the umbrella docket and the contested cases.
Intention to meet with the TSPs involved in the Permian plan toward the end of January.
A tentative date of January 28th has been set to discuss granular details around sequencing.
Acknowledged that it may require more than one meeting, but is committed to meeting the needs expressed.
▶️Kristi Hobbs - ERCOT - Import Paths & Level of Voltage
Discussion on import paths highlighted importance of prioritizing the 345 and 765 voltage pass lines identified for 2030.
Recognition of the need to ensure power movement capability into the region by 2030 with chosen voltage levels by the Commission.
Acknowledgment of future work needed on scheduling and sequencing for CCN applications.
Discussion of the importance of tracking both Permian Basin and Delaware projects as foundational to the region's infrastructure.
Emphasis on effective project management to ensure on-time and on-budget completion.
Announcement of a forthcoming regional transmission plan, outlining both 345 and 765 voltage level options, with a report to be released soon.
Scheduled ERCOT workshop on January 27 to discuss the transmission plan comparison.
Appreciation expressed for the swift completion of the Permian Basin reliability plan.
Commendation for the teamwork and effort leading to a successful year in planning and execution at ERCOT.
The first PFP introduces new section 25.517, establishing guidelines for ERCOT to set technical standards and grant exemptions based on these guidelines.
The second PFP involves modifications to existing section 22.251 concerning the review of ERCOT conduct, including minor changes and a new subsection addressing appeals for ERCOT decisions related to exemptions.
A motion was made to approve both proposals for publication.
