Pablo Vegas discussed the performance of the ERCOT grid during recent winter storms and introduced changes to capacity, demand, and reserve reporting.
Highlighted the importance of the Capacity Demand Reserve (CDR) report, which now includes comprehensive load forecasts and energy storage resources.
Discussed the performance indicators and strategic changes to the CDR report to better inform market trends, including future scenarios based on variable changes.
Discussed ERCOT's robust communication and planning efforts during winter storms, highlighting improvements in weatherization and increased battery storage capacity.
Explained the ongoing transmission planning efforts including the introduction of a potential 765 kV system to meet growing load demands, especially in the Permian Basin.
Discussed the benefits of a 765 kV system for statewide transmission planning, emphasizing reduced line losses, enhanced grid stability, and overall cost benefits.
Highlighted ongoing planning with a focus on transmission enhancements, discussing the role of increased battery storage and renewable energy sources.
Mentioned ERCOT's independence and self-reliance in grid management, and discussed potential interconnection with neighboring systems without altering FERC jurisdiction.
Acknowledgment of progress made in integrating stakeholder voices and policy governance in the industry.
Introduction of new TAC vice chair, Martha Henson, noted for her expertise.
TAC meeting summary: in January, unanimously approved 17 revision requests.
Subcommittee leadership confirmed with a mix of returning and new members.
Endorsement of three RPG projects unanimously voted by TAC.
Changes proposed to the ancillary service methodology associated with NPRR1257 and NOGRR271, setting a 157 megawatt limit on RRS resources.
Discussion of 2024 goals with plans for 2025 focusing on broader, sustainable goals.
Mapping of revision requests to TAC goals, with significant emphasis on cost-effective market design improvements and other key goals related to reliability and market monitoring.
Recognition of strategic objectives aiming to enhance grid reliability and economic competitiveness.
▶️ 8 - Update on CPS Energy Braunig Unit 3 RMR Agreement and Life Cycle Power Mobile Generation Solution as alternative to Braunig Units 1 and 2 Discussion - Woody Rickerson / Chad V. Seely
There is an increased budget for the Braunig resources, mainly for Unit 3, due to higher costs for outage inspection, equipment, and compliance.
CPS Energy has submitted updated budgets which reflect an overall increase of $11 million for the Braunig Units.
The necessity of the units is justified by a transmission reliability analysis showing overloads in the San Antonio area that require capacity until 2027.
No market solutions met criteria to compete with Braunig resources; thus, Unit 3 RMR agreement was recommended.
The alternative with mobile generation involves relocating 15 mobile generation units, each 32 MW, from Houston to San Antonio.
Unit 3 RMR agreement has not yet been executed due to ongoing negotiations with CPS regarding emissions exceedances and outage inspection coordination.
The emissions addendum for Unit 3 deals with new NOx emissions limits and may involve costs associated with NOx allowances during summer.
Discussion of costs associated with mobile generation solution: $26 million for lifecycle relocation and $27 million for CPS interconnections.
The mobile generation solution presents a faster deployment timeline and greater reliability characteristics compared to Units 1 and 2.
ERCOT is considering seeking exceptions to accelerate interconnection processes for mobile generation units.
Staged deployment of mobile generation units expected over the summer of 2025.
The need for swift action is emphasized due to the pressing reliability concerns for summer 2025.
Environmental emissions considerations for mobile generation units are being discussed with regulatory bodies.
There are two associated voting items with this agenda.
The chair of the finance and audit committee provided an update to the board.
The committee members voted to recommend board approval of two items.
▶️ 9.1.1 - Financial Corporate Standard Vote - Chair
Motion to approve item as presented passed unanimously unanimously with no abstentions.
▶️ 9.1.2 - Investment Corporate Standard Vote - Chair
Motion to approve item as presented passed unanimously with no abstentions.
Items 9.1.1 and 9.1.2 both had minor revisions.
Finance and Audit Committee approved the internal audit committee charter with updates from global internal audit standards promulgated in 2024.
Preliminary audited financial results showed ERCOT's 2024 revenues were $97 million favorable to budget due to higher interest rates and other savings.
ERCOT is compliant with investment policies and debt requirements under securitization arrangements.
In April's meeting, the committee will meet with external auditors for financial statement audit acceptance.
▶️ 9.2 - Human Resources and Governance Committee Report Discussion - HR&G Chair
▶️ 9.2.1 - Election of Chief Executive Officer and Ratification of Officers of ERCOT Vote - Chair
Motion to approve item as presented passed unanimously with no abstentions.
The committee voted to recommend the board approve the election of ERCOT's CEO, Pablo Vegas.
The recommendation includes the ratification of ERCOT's officers.
▶️ 9.2.2 - Ratification of Officers of Texas Electric Market Stabilization Funding M LLC Vote - Chair
Motion to approve item as presented passed unanimously with no abstentions.
▶️ 9.2.3 - Ratification of Officers of Texas Electric Market Stabilization Funding N LLC Vote - Chair
Motion to approve item as presented passed unanimously with no abstentions.
▶️ 9.2.4 - 2026 ERCOT Board Meeting Schedule and Annual Meeting of Members Vote - Chair
Motion to approve item as presented passed unanimously with no abstentions.
A brief discussion was held about annual review of charters and committee membership.
There are three new board members to help with committee membership.
An effort is underway to address committee membership, with discussions expected at the next board meeting.
Motion to approve item as presented passed unanimously with no abstentions.
Recommendation to accept regional planning group project option 1.
The motions were wrapped into one motion with seconding, leading to a unanimous approval with no opposition or abstentions.
▶️ 9.3.5 - Recommendation regarding 2025 ERCOT Methodologies for Determining Minimum Ancillary Service Requirements Vote - Chair
Motion to approve item as presented passed unanimously with no abstentions.
Update limits the amount of responsive reserve service a resource can provide using primary frequency response to 157 megawatts.
TAC endorsed the update and the corresponding NPRR1257.
R&M Committee recommended the board to urge the Public Utility Commission of Texas to approve the methodology update effective upon NPRR1257 implementation.
Board voted, with no opposition or abstentions, to recommend the update.
Staff reviewed four transmission planning studies, including cost-benefit analysis on 345 kV regional and 765 kV strategic plans.
R&M Committee received updates on real-time co-optimization and battery programs, progressing on schedule.
Discussion on high-impact policy issues within stakeholder process: Dispatchable Reliability Reserve Service (DRRS) and large loads identified as key focus areas for 2025.
No voting items were discussed at the T&S meeting.
A speaker from Georgia Tech presented to T&S on AI in grid networks, prompting interest in further collaboration.
Regular updates on projects were provided, with everything reportedly on track.
A detailed discussion was held at T&S on the RTC implementation project, which is currently on schedule with some risks identified and mitigation plans in place.
▶️ 10 - 2024 Internal Revenue Service Form 990 Questionnaire Discussion - Richard Scheel
The questionnaire is part of the annual process for the board.
Board members are expected to fill out and return the questionnaire promptly.
New board members are offered additional guidance if needed.
▶️ 12 - Vote on Matters from Executive Session Vote - Chair
Motion to approve items addressed in the executive session were approved unanimously with no abstentions.
The board conducted voting in two rounds.
First motion for approval of litigation matter (executive session agenda item ES 2.8.4) was moved, seconded, and approved unanimously.
Second motion included four personnel matters (executive session agenda items ES 2.9.5, ES 2.9.6, ES 2.9.7, and ES 2.9.8) which was moved, seconded, and approved unanimously.
